Pakistan has suffered an estimated $40 billion in economic losses since bilateral trade with India was disrupted in 2019, the head of a Pakistani business advocacy organisation said on Monday, calling for the restoration of commercial relations between the two neighbouring countries.
Noor Muhammad Qasuri, chairman of the Pak-India Business Council (PIBC), said restrictions on trade had forced Pakistani businesses to procure essential raw materials, industrial products and agricultural commodities from distant international markets, significantly increasing transportation costs and delivery times.
In a statement, Qasuri urged Islamabad and New Delhi to revive bilateral trade, arguing that renewed economic engagement would benefit industries in both countries and create opportunities for investment, tourism and regional cooperation.
The $40 billion figure represents the council's estimate of cumulative economic losses rather than an independently verified official assessment.
๐ง๐ฟ๐ฎ๐ฑ๐ฒ ๐ฑ๐ถ๐๐ฟ๐๐ฝ๐๐ถ๐ผ๐ป ๐๐ถ๐ป๐ฐ๐ฒ ๐ฎ๐ฌ๐ญ๐ต
Trade relations between India and Pakistan deteriorated sharply in 2019 following the Pulwama terror attack and subsequent military and diplomatic tensions.
Commercial exchanges faced further restrictions after the two countries took additional measures following the Pahalgam terror attack in April 2025.
Qasuri said the prolonged disruption had compelled Pakistani manufacturers and traders to rely on more expensive supply chains, even when the required products were readily available in neighbouring India.
He argued that the additional freight charges and longer delivery schedules had increased operating costs for several sectors of Pakistan's economy.
๐ฃ๐ต๐ฎ๐ฟ๐บ๐ฎ ๐๐ฒ๐ฐ๐๐ผ๐ฟ ๐ฐ๐ผ๐๐น๐ฑ ๐๐ฎ๐๐ฒ $๐ฏ ๐ฏ๐ถ๐น๐น๐ถ๐ผ๐ป ๐ฎ๐ป๐ป๐๐ฎ๐น๐น๐
The pharmaceutical industry was among the sectors highlighted by the business council as particularly affected by the disruption in bilateral trade.
Qasuri said Pakistan's pharmaceutical manufacturers depended on raw materials that could be sourced from India at comparatively lower transportation costs.
He estimated that restoring access to Indian supplies could generate annual savings of between $2 billion and $3 billion for the industry.
According to the PIBC chairman, geographically closer suppliers could help Pakistani companies reduce freight expenditure, shorten delivery schedules and improve access to essential manufacturing inputs.
He maintained that lower production costs would also benefit the broader healthcare supply chain.
๐ง๐ฒ๐ ๐๐ถ๐น๐ฒ ๐บ๐ถ๐น๐น๐ ๐ณ๐ฎ๐ฐ๐ฒ๐ฑ $๐ฑ ๐ฏ๐ถ๐น๐น๐ถ๐ผ๐ป ๐ถ๐ป ๐ฒ๐ ๐๐ฟ๐ฎ ๐ฐ๐ผ๐๐๐
Pakistan's textile industry has also faced higher expenditure because of the suspension of trade and declining domestic cotton production.
Qasuri said textile mills had been forced to purchase cotton from Brazil, Egypt, China and the United States instead of relying on geographically closer supplies.
He estimated that these imports had resulted in additional expenditure of approximately $5 billion.
The PIBC chief also expressed concern over the shrinking area under cotton cultivation in Pakistan, noting that farmers in traditional cotton-growing regions were increasingly switching to sugarcane.
He said the shift was affecting domestic cotton availability and placing additional pressure on textile manufacturers, which depend heavily on the crop as a principal raw material.
Qasuri called for improved agricultural policies to revive cotton cultivation and reduce the industry's dependence on costly imports.
๐๐ต๐ฒ๐ฎ๐ฝ๐ฒ๐ฟ ๐ถ๐บ๐ฝ๐ผ๐ฟ๐๐ ๐ณ๐ฟ๐ผ๐บ ๐๐ป๐ฑ๐ถ๐ฎ ๐ฝ๐ผ๐๐๐ถ๐ฏ๐น๐ฒ
Apart from pharmaceuticals and textiles, Pakistan has been importing several commodities from distant markets despite India's capacity to supply similar products.
Qasuri identified sugar, fertilisers, cement, petroleum products, iron and steel, vegetables and heavy machinery among the goods that could potentially be sourced from India.
He pointed out that Indian oil refineries were geographically closer to Pakistan than many existing overseas suppliers, making petroleum imports potentially cheaper and faster.
The business council chairman argued that access to Indian agricultural and industrial products could help Pakistani manufacturers reduce operating costs while ensuring more reliable supplies.
He also maintained that restoring trade could encourage greater business investment and expand commercial opportunities on both sides of the border.
๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ฏ๐ผ๐ฑ๐ ๐๐ฟ๐ด๐ฒ๐ ๐ฟ๐ฒ๐๐๐ผ๐ฟ๐ฎ๐๐ถ๐ผ๐ป ๐ผ๐ณ ๐๐ถ๐ฒ๐
Qasuri said political differences should not prevent India and Pakistan from exploring opportunities for mutually beneficial economic cooperation.
He suggested that outstanding disputes could be addressed through dialogue while commercial engagement was gradually restored.
The PIBC chairman also highlighted the potential for tourism, particularly visits by Indian travellers to religious and historical sites in Pakistan and places associated with their ancestral families.
Referring to regional economic cooperation, he cited India's financial assistance to Sri Lanka during its economic crisis as an example of how neighbouring countries could support each other during difficult periods.
He maintained that the two countries shared historical, cultural and family connections that could provide a foundation for improved economic relations.
However, the proposal to resume trade comes against the backdrop of continuing diplomatic and security tensions, with no formal announcement from either government indicating an immediate restoration of bilateral commercial exchanges.