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Pakistan imports from India surge 69% despite official trade restrictions

Pakistan's merchandise imports from India have jumped dramatically by 69 percent, defying an official ban on most bilateral trade. The surge underscores the challenges Islamabad faces in enforcing restrictions on Indian goods.

LSN India · 27 October 2026

Pakistan imports from India surge 69% despite official trade restrictions

Pakistan's imports from India have experienced a substantial increase of 69 percent, according to recent trade data, highlighting the persistence of commercial flows between the two nations despite formal trade barriers. The significant jump occurs against the backdrop of Pakistan's official restrictions on Indian merchandise, which have been in place to manage bilateral economic relations and currency pressures.

The expansion in imports suggests that goods continue to enter Pakistan through various channels, including re-exports via third countries and trade through permitted categories that remain open despite broader restrictions. Analysts attribute the surge to strong demand for Indian manufactured goods and raw materials that fulfill supply chain requirements for Pakistani industries unable to source alternatives domestically or from other trading partners at comparable prices.

Pakistan has maintained selective import restrictions on Indian products as part of its broader trade policy framework, though certain items including pharmaceutical ingredients, chemicals, and industrial raw materials have continued to enter the country under permitted exemptions. The gap between formal policy and actual trade flows reflects the deep economic interdependence of the two South Asian nations and the practical difficulties of enforcing comprehensive trade barriers.

The development comes amid ongoing discussions between New Delhi and Islamabad regarding normalized trade relations. Pakistani officials have cited currency conservation and domestic industry protection as reasons for maintaining import controls, though the latest figures suggest enforcement challenges persist despite regulatory measures.