Pakistan’s import payment to India jumps by 62% in Feb 2023 State Bank of Pakistan

Pakistan’s import payment to India jumps by 62% in Feb 2023

Pakistan’s import payment to India massively jumped by 62 per cent in the month of February 2023 when compared with previous month.

According to data released by State Bank of Pakistan (SBP), despite dollar scarcity in the country, the import payment to India increased to $20.8 million in February 2023, which is above 62 per cent when compared with $12.8 million in January 2023.

READ MORE: Sensitive Price Inflation climbs by around 47%: PBS

Meanwhile the payment is also increased by 40 per cent when compared with $14.83 million paid in February 2022.

Pakistan has paid an amount of $125 million for imports from India during eight months of current fiscal year, according to official data.

READ MORE: Pakistan’s foreign exchange reserves rise to $10.14 billion

The SBP said the country had paid $125.18 million during July – February 2022/2023 as compared with payment of $121.76 million in the same period of the last fiscal year.

Pakistan and India have a complex trade relationship due to a long-standing history of political tensions and conflicts. Currently, the two countries have limited trade relations, with most trade occurring through third-party countries.

READ MORE: Pakistan’s weekly forex reserves move up by $93 million

According to the World Bank, in 2020, Pakistan’s exports to India amounted to $16 million, while India’s exports to Pakistan amounted to $229 million. This represents a significant decline from the peak of trade between the two countries in 2012, when bilateral trade was valued at $2.7 billion.

There have been some efforts to improve trade relations between the two countries, such as the establishment of the India-Pakistan Joint Business Forum in 2012. However, progress has been slow, and trade barriers such as high tariffs and non-tariff barriers continue to hinder bilateral trade.

READ MORE: SBP’s forex reserves rise more than one month import cover

Overall, while there is potential for increased trade between Pakistan and India, political tensions and trade barriers have limited the development of trade relations between the two countries.

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