Pakistan: $40 Billion Trade Loss After 2019 India Suspension

Since the August 2019 suspension of trade with India, Pakistan has incurred an estimated <b>$40 billion</b> loss, as firms shifted to costlier distant suppliers, analysts said on June 5, 2024, across multiple sectors including textiles and food. The trade freeze stemmed from long‑standing anti‑India sentiment after the 2016 Uri attack and subsequent diplomatic rows, prompting Islamabad to impose non‑tariff barriers and ban Indian imports despite WTO obligations. Economists warn the <b>$40 billion</b> gap widens Pakistan’s current‑account deficit, fuels higher inflation and pushes exporters toward China’s Belt and Road network, reshaping South Asian supply chains and diplomatic leverage in the near term.