India Targets $500M Pakistani Goods Entering via Third Countries
Amid heightened tensions and national security concerns, Indian authorities have flagged the continued inflow of Pakistani goods into the country through indirect trade channels, estimating the volume to be worth nearly $500 million annually. This comes despite a standing ban on direct trade between the two countries.
A senior official revealed that Pakistani-origin products are making their way into India via intermediary nations such as the United Arab Emirates, Singapore, Indonesia, and Sri Lanka. These nations are reportedly serving as transit points where goods are repackaged and relabeled to mask their true origin before being exported to India.
Pakistani Imports into India via Intermediaries
“The UAE is a major routing point for Pakistani fruits, dry dates, leather goods, and textiles. Singapore is believed to be handling the rerouting of chemicals, while Indonesia is being used to send cement, soda ash, and textile materials. Sri Lanka is another conduit for dried fruits, salt, and leather products,” said the official.
Call for Total Trade Prohibition
In light of the scale of the circumvention, the official recommended an expansion of the trade ban to include indirect imports as well.
“This comprehensive ban imposed by India including a ban on indirect exports would enable the customs authorities to prevent Pakistan exports from entering India through circumvention.”
Trade and Security Concerns Interlinked
The development follows a deadly terror attack in Pahalgam on April 22 that claimed 26 lives. While the government continues to investigate the security implications, economic measures such as trade restrictions are being reinforced to assert pressure and close loopholes.
Direct imports from Pakistan had already dwindled to approximately $0.5 million per year following the imposition of a 200% customs duty after the Pulwama attack in 2019. However, this new revelation suggests that trade has continued through backdoor methods, undermining the spirit of the original ban.
India Reinforces Trade Discipline
Authorities are now reviewing customs protocols and tightening inspection mechanisms to detect and block imports suspected of being Pakistani in origin, regardless of the country of dispatch. The move is part of a larger strategy to ensure that economic policies align with national interests, especially at a time of heightened cross-border tensions.
India’s enforcement of a wider trade embargo on Pakistani goods is aimed at preserving the integrity of its national security and economic discipline, ensuring that banned goods do not re-enter the market under misleading labels or third-country disguises.
