&w=3840&q=100)
Despite hostilities and border shutdown, Pakistan-India trade continues via third countries
Despite heightened tensions and a brief military confrontation in May, trade between India and Pakistan continued, largely facilitated through third-country channels, according to official data.
Imports from India reached $211.5 million during the first 11 months of FY25, surpassing the previous fiscal year's total of $207 million and $190 million in FY23, Dawn reported citing figures from the State Bank of Pakistan.
Notably, in May, when a four-day conflict broke out in the first week, Pakistan imported goods worth $15 million from India. This was marginally lower than the $17 million recorded in the same month last year.
STORY CONTINUES BELOW THIS AD
However, Pakistan's exports to India remained negligible. May exports stood at just $1,000, bringing the total for July-May FY25 to only $0.5 million. This continues a trend of highly one-sided trade, with exports amounting to $3.44 million in FY24 and just $0.33 million in FY23.
Formal trade ties between the two neighbours have remained strained since 2019. Following the April 22 Pahalgam terror attack, which killed 26 people, India took swift action, including the suspension of operations at the Attari land transit post — a key route for limited cross-border trade.
In response, Pakistan declared a complete halt to trade with India, including any exchange routed through third countries.
'Traders were reluctant to discuss the continuation of imports during the tense period. However, one trader suggested: 'It may have come from a third country and the payment for the May imports would have been made before the war.'
Although official data reflects limited trade, some research institutions claim the actual trade is far higher. 'India's unofficial exports to Pakistan are estimated at USD 10 billion annually, routed primarily through Dubai, Colombo, and Singapore,' Dawn said quoting a research body.
Analysts said the unofficial trade remains robust due to Pakistan's high cost of production and industrial dependence on foreign inputs. 'We should not ignore smuggling from India since the cost of production in Pakistan is the highest in the region, which creates space for goods from India, China, and Bangladesh,' said an exporter.
STORY CONTINUES BELOW THIS AD
With inputs from agencies
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
39 minutes ago
- Time of India
Adani to rival Reliance with PVC plant by 2028
Billionaire Gautam Adani's conglomerate will build a 1 million tonne a year PVC plant at Mundra in Gujarat, marking its foray into the petrochemicals sector where Reliance Industries Ltd is the main player, sources said. PVC, or Polyvinyl Chloride, is a synthetic plastic polymer that is widely used to make an array of products - from pipes and fittings to window and door frames, cable insulation, vinyl flooring and wall coverings, credit cards and toys. India's annual PVC demand is about 4 million tonnes, while domestic production capacity stands around 1.59 million tonnes, half of which is with Reliance. PVC demand is projected to grow at a CAGR of 8-10 per cent, driven by sectors such as agriculture as land under irrigation increases, infrastructure aided by water supply and sanitation, housing and pharmaceutical and packaging segments. Adani Group's flagship Adani Enterprises Ltd is setting up a petrochemical cluster in Mundra. Within this cluster, it is constructing a PVC manufacturing plant with a capacity of 1 million tonnes per annum, two sources aware of the matter said. The facility is slated for commissioning by fiscal 2028 (April 2027 to March 2028 financial year). The PVC Project is expected to include capabilities for manufacturing PVC, chlor-alkali, calcium carbide and acetylene units. Adani group is looking to implement the Acetylene and Carbide-based PVC production process, with environment clearance and consent to establish the project, having already been received, sources said. Given the current higher demand and lower supply of PVC in India, the Adani project will help reduce the supply gap and import dependency. The project will pit the group against Reliance, which is currently India's largest PVC producer, with an estimated capacity of around 7,50,000 tonnes per annum. Reliance has PVC plants at Hazira, Dahej and Vadodara in Gujarat. It is looking to double its capacity by 2027. Adani's group and Mukesh Ambani's Reliance had for long moved in non-overlapping orbits, but first clean energy and now petrochemicals would be sectors where they could be competing against each other. Sources said Adani's Mundra plant could in the future be expanded to 2 million tonnes per annum capacity on demand growth. Initially halted in March 2023 due to financial uncertainties and allegations from US short-seller Hindenburg Research, work on the project was resumed last year. The Adani Group has since refocused its resources, raising over USD 5 billion in equity and additional debt, and fully repaid share-backed financing. Financed by an SBI-led consortium, the project will utilise acetylene and carbide-based PVC production processes. Sources said the Adani group is confident of sourcing feedstock given that its portfolio companies have expertise in trading in domestic and international markets. Also, the group's synergy benefits and availability of large land parcels in Mundra, together with access to port facilities will optimise the logistics cost for sourcing of raw material/inventory handling cost as well as for transportation of the final products to the prospective domestic and overseas markets and ensure smooth implementation of the project. They said the Adani portfolio has a proven track record in successfully commissioning and managing large-scale infrastructure and industrial projects, encompassing areas like ports, power, and logistics. It has an abundance of science and engineering graduates, along with a well-trained workforce proficient in various skills.
Time of India
an hour ago
- Time of India
Top stocks to buy: Stock recommendations for the week starting July 7, 2025
Top stocks to buy (AI image) Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting July 7, 2025) are INOX Wind, and Coforge. Let's take a look: Name CMP Target Upside INOX Wind 180 210 17% Coforge 1946 2200 13% INOX Wind INOX Wind Ltd (IWL), a leading integrated wind OEM in India, offers end-to-end solutions from turbine manufacturing to project execution & O&M. Backed by 2.5GW capacity & a robust 3.2GW order book, it is well-positioned to benefit from India's plan to double its wind capacity to 100GW by 2030. Wind Turbine Generators (WTG) ramp-up & O&M scale-up are underway, supported by a 1,500MW turnkey order & growing repeat business. Its subsidiaries IGESL (O&M, 5.1GW portfolio) & IRSL (EPC, now diversifying into solar/hybrid/crane services) enhance group synergies. Backed by policy tailwinds & a new 4MW turbine pipeline, we estimate 48% revenue & 38% EBITDA CAGR over FY25–28. Strong visibility, clean balance sheet, & execution momentum support a long-term structural growth story. Coforge We reiterate our BUY on Coforge, supported by a robust executable order book of USD 1.5b (+47% YoY) and strong traction in BFSI and transportation, both growing over 20% YoY in FY25. The company is on track to achieve its USD 2b revenue target by FY27, aided by organic growth, Cigniti-led cross-sell, and the landmark USD 1.6b Sabre deal. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo Cross-currency gains and broad-based client momentum across BFSI and Insurance (~48.5% of revenue) further enhance visibility. Margins are set to expand, with one-offs behind and tailwinds from delivery mix and lower ESOP costs; management is targeting 18% EBITDA margin by FY27. Margin improvement is already visible, with EBIT margin rising to 14% in 1QFY26. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
an hour ago
- Time of India
The Xi Jinping question: Is China's 'leader for life' planning his exit? Or just delegation of powers?
Chinese President Xi Jinping, seen widely as a leader for life, is reportedly beginning to delegate authority to key institutions of the ruling Communist Party, raising speculation about a possible transition of power or retirement planning after over a decade at the helm. According to a report by state-run Xinhua news agency, the 24-member Political Bureau of the Communist Party of China (CPC) reviewed a new set of regulations during its meeting on June 30. The meeting, presided over by Xi, focused on standardising the responsibilities, establishment, and functioning of the CPC Central Committee's decision-making, deliberative, and coordinating institutions. Xinhua noted that these institutions are expected to enhance leadership and coordination on major national tasks. The announcement triggered talk among observers that Xi, in power since 2012, may be preparing for a shift in his role. A political analyst based in China, speaking to the South China Morning Post on condition of anonymity, said: 'The rules may be set up to regulate the bodies because it's a key time for power transition.' The Hong Kong-based publication carried the report on Sunday. However, other experts suggest the changes may simply reflect Xi's desire to step back from day-to-day governance while retaining overall control. Victor Shih, a specialist in Chinese elite politics and finance at the University of California San Diego, told the Post, 'It does seem that Xi might pay less attention to day-to-day details, which necessitates a policing mechanism to ensure that his policy priorities are still being carried out by lower-level officials. ' Adding to the speculation was Xi's absence from the BRICS summit in Rio de Janeiro, which began on Sunday. For the first time since assuming the presidency, Xi skipped the gathering of emerging economies. Chinese Premier Li Qiang is representing the country instead. The backdrop to this development includes mounting pressure on China's economy. The ongoing tariff war with the US, which has impacted exports worth USD 440 billion, combined with a slump in the housing market and the effects of the now-abandoned zero COVID policy, has weighed heavily on economic growth. Since becoming General Secretary of the CPC in 2012, Xi rapidly consolidated power across the party, the presidency, and the military. He led a massive anti-corruption campaign, resulting in punishment for over a million officials and the removal of several top generals. In 2016, he was declared the 'core leader' of the party, a status previously held only by founder Mao Zedong. In 2018, China's legislature scrapped the presidential term limit, enabling Xi to secure an unprecedented third five-year term as General Secretary in 2022, followed by a third presidential term in 2023. His predecessors had retired after two terms. Analysts believe that Xi's plans—whether to retain control or facilitate an eventual handover—may become clearer by the next CPC congress scheduled for 2027, when his current term ends.
