The recent terrorist attack in Pahalgam, which killed 26 tourists, has further deteriorated the already worsening relationship between India and Pakistan. One repercussion is the halt of trade. How big is the trade between Indian and Pakistan? Figures, sourced from the Ministry of Commerce, Government of India, and UNCTAD (United Nations Conference on Trade and Development), reveal a declining economic relationship. The trade relations between India and Pakistan have, at best, been fragile for years. From 2009 to 2018, things looked steady, with annual trade hovering between USD 2 billion and USD 2.7 billion. In 2018, the numbers peaked at USD 2.9 billion. Post Pulwama attack in February 2019, that killed 40 security personnel, the relationship steadily went downhill. Not surprisingly, the trade between India and Pakistan dropped to USD 1.3 billion in 2019 and further to USD 0.3 billion in 2020. In 2023, it was only USD 0.5 billion. It had reached USD 1.2 billion in 2024.
