📷 Image: Wikimedia Commons / Mike Young
Business
Pakistan faces $40 billion loss as India halts bilateral trade, key sectors hit
✍️ Livemint
🗓 04 Nov 2026, 06:53 PM
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The suspension of trade between India and Pakistan is estimated to cost Pakistan about $40 billion, with manufacturing, textiles and agriculture bearing the brunt.
India’s decision to suspend most bilateral trade with Pakistan has been quantified by analysts as a $40 billion hit to the Pakistani economy. The loss reflects the abrupt halt of cross‑border shipments that previously accounted for a sizable share of Pakistan’s export and import basket.
Key sectors such as manufacturing, textiles and agriculture have felt the sharpest impact. Factories that relied on Indian raw materials face production delays, while Pakistani textile exporters have lost a major market for their garments. Agricultural produce destined for Indian buyers, especially fruits and vegetables, now sits unsold, squeezing farmer incomes.
Economists warn that the prolonged trade freeze could deepen Pakistan’s balance‑of‑payments stress and slow growth, urging both governments to explore alternative channels or a swift diplomatic resolution to restore commerce.
Key sectors such as manufacturing, textiles and agriculture have felt the sharpest impact. Factories that relied on Indian raw materials face production delays, while Pakistani textile exporters have lost a major market for their garments. Agricultural produce destined for Indian buyers, especially fruits and vegetables, now sits unsold, squeezing farmer incomes.
Economists warn that the prolonged trade freeze could deepen Pakistan’s balance‑of‑payments stress and slow growth, urging both governments to explore alternative channels or a swift diplomatic resolution to restore commerce.