Since the beginning of the current financial year, despite the rising tension between Pakistan and India, trade between the two has remained largely unaffected. In a recent report released by the State Bank of Pakistan (SBP) it was revealed that Pakistan grew its exports to India during the first eight months of 2016-17 while curtailing imports by 23pc.
The trade balance, however, remains in favour of India.
The two countries have been at loggerheads for the longest of times, but it seems worsening political relations haven’t had any impact on bilateral trade relations.
The exports from Pakistan to India registered an increase of 14pc which amounted to $286 million in July-Feb. Imports from India decreased 23pc to $958.3m from $1,244m recorded a year ago.
The main reason for an increase in exports from Pakistan to India is due to the high demand of cement across the border. This has helped in counteracting the impact of the fall in cement exports to Afghanistan and South Africa.
Since more than five years, the balance of trade has been in favour of India as Pakistan failed to create a market for its products in the neighbouring country. Better trade relations between both Pakistan and India are fraught with bitter political opposition on both sides.
The first 8 months of the current financial year saw Pakistan registering a trade deficit of $672m with India. The deficit was $993m in the same period of the last fiscal year.
The imports figure from India in 2015-16 was over four times the exports figure from Pakistan. Despite the poor political and diplomatic relations with India, imports from them were at a five-year high. Pakistan imported goods worth $1.8b in 2015-16 compared to the exports of just $400m.
