KARACHI: Pakistan recorded a $35 million trade deficit with neighboring India in the first quarter of the current fiscal year despite formal bilateral trade remaining suspended since August 2019, according to official central bank data reviewed by Arab News.
Trade between the two countries has been halted since Pakistan suspended imports and exports after India revoked the semi-autonomous status of Indian-administered Kashmir in 2019. However, limited imports continue under special permissions, primarily involving pharmaceutical raw materials described by officials as humanitarian exemptions. The continuation of such flows comes at a time of renewed border tension following cross-border strikes and a brief military conflict in May this year.
State Bank of Pakistan (SBP) data shows that during July–September of fiscal year 2025–26, Pakistan imported $36.6 million worth of goods from India while exporting goods worth $1.95 million. This resulted in a $34.7 million surplus in India’s favor.
“Pakistan imports largely pharma APIs [Active Pharmaceutical Ingredients] from India on humanitarian grounds,” said Shankar Talreja, head of research at Karachi-based Topline Securities. “The APIs market is quite well-established in India, and its trade is currently permitted [by Pakistan],” he told Arab News.
