Pakistan's choice to suspend all commerce with India, encompassing indirect channels via Dubai, will probably affect its own financial stability more profoundly.
Given Pakistan's considerable dependence on commercial exchange with its neighboring nations, securing alternative suppliers for crucial goods such as pharmaceuticals and organic chemicals could prove difficult.
Conversely, India's exports to Pakistan represent a minor portion of its overall export activities, totaling $455 million between April 2024 and January 2025, in comparison to India's total exports valued at $358.63 billion.
Possible Ramifications:
Pakistan might encounter hurdles in obtaining vital supplies, potentially creating economic strain for the nation and its populace.
Indian exporters are not anticipated to face substantial repercussions due to the limited scale of trade with Pakistan.
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Unofficial Commerce:
Notwithstanding formal trade limitations, unofficial trade through Dubai is projected to rise, with Indian goods being relabeled as products from the UAE.
This existing informal exchange is already considerable and might expand further given the current scenario.
This situation could escalate tensions between the two nations, potentially influencing regional commerce and economic equilibrium.