Pakistan has suffered an estimated USD 40 billion in economic losses since trade with India was suspended in 2019 following the Pulwama terror attack and subsequent bilateral tensions, according to Noor Muhammad Qasuri, chairman of the Pak-India Business Council, PTI reported.
Calling for the restoration of commercial ties between the two countries, Qasuri said resuming bilateral trade would reduce costs for businesses, strengthen supply chains and create opportunities for investment, tourism and wider regional cooperation.
In a statement, Qasuri said the suspension of trade had compelled Pakistani businesses to source essential raw materials and other goods from distant markets, significantly increasing freight and transportation costs as well as delivery times.
He highlighted the pharmaceutical sector’s dependence on raw materials available in India, stating that access to Indian supplies could help Pakistan’s pharmaceutical industry save between USD 2 billion and USD 3 billion annually.
The textile industry has also faced substantial additional costs amid declining domestic cotton production. According to Qasuri, Pakistani textile mills have been forced to procure cotton from Brazil, Egypt, China and the United States, resulting in an estimated additional expenditure of USD 5 billion.
He pointed out that Pakistan continues to import several essential commodities, including sugar, fertilisers, cement, petroleum products, iron and steel, vegetables and heavy machinery, from distant markets despite India’s significant production capacity in these sectors.
Qasuri said restoring trade with India could help Pakistani businesses reduce procurement and logistics costs while ensuring faster and more reliable supplies. He particularly highlighted the geographical advantage of Indian oil refineries, arguing that petroleum imports from India could be cheaper and quicker than supplies sourced from more distant countries.
He also expressed concern over the declining area under cotton cultivation in Pakistan, noting that farmers in traditional cotton-growing regions were increasingly shifting to sugarcane cultivation. This trend, he said, was affecting the textile industry and the wider economy, underlining the need for improved agricultural policies to revive domestic cotton production.
Beyond merchandise trade, Qasuri said renewed commercial engagement could open up opportunities for investment and tourism between the neighbouring countries. Pakistan, he added, could attract more Indian visitors interested in religious and historical sites, as well as ancestral homes and villages.
Highlighting the importance of regional economic cooperation, he referred to India’s financial assistance to Sri Lanka during its economic crisis as an example of how neighbouring countries could support one another during difficult times.
Qasuri maintained that political differences should not prevent Pakistan and India from exploring mutually beneficial economic opportunities, while outstanding disputes could be addressed through dialogue.
“Pakistan and India share historical, cultural and family ties, which could provide a foundation for improved relations,” PTI quoted him as saying.
He reiterated that restoring bilateral trade would help reduce import costs for Pakistani businesses while creating wider economic opportunities for both countries.