Negative impactEconomy
Why did Pakistan suffer $40 billion in economic losses after trade with India stopped? Which sectors were most affected?
Mint 1 hr ago·3 Nov 2026, 5:50 pm
Pakistan has suffered significant economic damage since suspending trade with India in 2019. The Pak-India Business Council estimates this loss at roughly $40 billion. The suspension forced Pakistan to rely on more expensive imports from other nations, leading to higher costs and supply chain delays. These issues have directly impacted domestic industries, causing operational disruptions and financial strain.
For investors, this highlights the risks of geopolitical isolation and supply chain volatility. The situation underscores how trade restrictions can erode profitability and economic stability. Moving forward, investors should monitor any diplomatic moves toward restoring trade ties and the resulting impact on Pakistan's currency and industrial output.
Excerpt from Mint
Pakistan has lost an estimated $40 billion since trade with India was suspended in 2019, according to the Pak-India Business Council. Its chairman, Noor Muhammad Qasuri, urged both countries to restore commercial ties, citing higher import costs, supply delays and damage to industries. Pakistan has suffered a loss of…Read the original at Mint
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- Category: Economy.
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