Trade between India and Pakistan has a lengthy history dating back to 1947, when both nations were established through partition. Although formal trade totals have historically remained low, particularly after 2019 when relations soured further, experts believe that informal channels are thriving and contribute significantly to bilateral commerce. Recently, following violence in Kashmir, trade restrictions were heightened with India halting participation in water-sharing agreements and Pakistan retaliating by cutting trade. Despite these actions, the existence of robust backdoor trading raises questions about the overall impact of official trade suspensions on economic relations between these two nations.
India and Pakistan's informal trade is significantly higher than official figures suggest, with billions in hidden backdoor trading continuing despite escalating hostilities.
India's suspension of the Indus River water-sharing agreement and other diplomatic measures against Pakistan signals a serious downturn in bilateral relations, raising questions on informal trade's sustainability.
Collection
[
|
...
]