Karachi, November 20, 2024 – Pakistan has made an import payment of $76.28 million to India during the first four months (July – October) of the fiscal year 2024-25, according to official data from the State Bank of Pakistan (SBP).
This represents a 3.67% increase from the $73.58 million paid during the same period in the previous fiscal year, signaling a steady flow of trade between the two neighboring countries despite the ongoing restrictions.
Pakistan has implemented a ban on imports from India under the Import Policy Order, which prohibits the entry of most goods originating from India. However, there are key exceptions to this policy, most notably for pharmaceutical products. These medical imports are permitted as long as they meet the necessary regulatory standards set by Pakistan’s Drug Regulatory Authority (DRAP). This exemption has allowed continued trade in the vital healthcare sector, where Indian pharmaceuticals play an important role in meeting the demands of the Pakistani market.
In October 2024, Pakistan’s import payments to India decreased to $16.98 million, down from $18.80 million in October 2023 and $19.29 million in September 2024. This decline may reflect a reduced volume of imports, likely influenced by the ongoing restrictions on non-pharmaceutical goods.
For the fiscal year 2023-24, Pakistan’s total import payments to India amounted to $206.89 million, an increase of 9% from the $190 million recorded in the previous year. This uptick was primarily driven by pharmaceutical imports, although other exempted goods also contributed to the rise.
The data underscores the complex nature of trade between Pakistan and India, where political tensions and trade barriers are counterbalanced by critical sectors like healthcare. As both countries navigate their strained relationship, the situation remains fluid, with ongoing discussions about trade policies and their broader impact on the economy.
The continuation of trade, particularly in pharmaceuticals, highlights the importance of maintaining essential supply chains despite political challenges. While the import restrictions remain in place, the exceptions allow for cooperation in key sectors like healthcare. This dynamic emphasizes the ongoing necessity for dialogue and cooperation between the two nations.
