The Secret Trade Route: Indian Goods' Journey to Pakistan

Indian goods worth over $10 billion reach Pakistan annually through indirect routes, bypassing trade restrictions. Goods are sent to ports like Dubai, relabelled, and shipped to Pakistan. This grey area in trade allows businesses to maintain trade flow despite government restrictions, often leading to higher prices.

Indian goods worth over USD 10 billion annually are reaching Pakistan via indirect routes through ports in places like Dubai, Singapore, and Colombo, despite stringent trade restrictions, according to the Global Trade Research Initiative (GTRI).

Indian companies have devised a method to bypass the barriers by sending their products to intermediary hubs such as Dubai, where a third party offloads, stores, and then relabels them to show different countries of origin. This not only allows them to successfully enter the Pakistani market but also to sell these goods at higher prices by avoiding direct trade scrutiny.

However, this transshipment model operates within a legal grey zone. Despite its legality, it highlights how businesses adapt to keep trading viable amid political tensions. With mounting economic pressures and increasing restrictions, the likelihood of complete cessation of India-Pakistan trade looms, especially following significant geopolitical incidents.

(With inputs from agencies.)