Pakistan imports $61.7 million of Indian goods in three months despite trade ban

Political and diplomatic relations between India and Pakistan are strained and official trade between the two countries is closed. Even so, economic transactions have not stopped altogether. Even as bitterness peaked, Pakistan imported goods worth $61.7 million from India between July and September 2026.

According to figures released by the State Bank of Pakistan, imports over these three months, July to September 2026, came to $61.7 million. In the same period last year the figure was $36.6 million. Imports thus rose by about 69 per cent in a year. Notably, Pakistan made no exports to India during this period.

The rise in imports while official trade remains suspended is drawing attention. However, the figures cover import payments made through banks. They do not make clear by which route each consignment reached Pakistan.

Medicines and organic chemicals make up a large share of these imports from India. Raw material from India is important for Pakistan's pharmaceutical industry. The Indian pharmaceutical industry supplies medicines and the inputs needed to make them at relatively low prices.

Plastics, petroleum products, dyes, rubber, tea, coffee, vegetables and spices are also among the items that appear to be traded. Importing these from other countries can raise freight and production costs. Demand for Indian products therefore continues because of business needs, despite the political tension.

With direct trade closed, it is being suggested that Indian goods are reaching Pakistan through third countries such as the United Arab Emirates (UAE), Malaysia and Singapore. Some goods are first sent to third countries and exported from there to Pakistan. In such cases the country where the goods were made can differ from the route by which they were sent.

According to some analysts, certain recent positive developments between the two countries point to improving ties. But trade figures alone cannot lead directly to the conclusion that diplomatic relations have improved. Questions related to security and terrorism remain. For official trade to resume, an atmosphere of trust between the two countries is necessary.