In August 2019, Pakistan broke trade relations with India and banned the import of many goods from India, prompting the withdrawal of the special status of Jammu and Kashmir. Pakistan, already reeling under a decaying economy, was now forced to change its decision to save the textile industry, which is facing rising sugar prices and crisis. Pakistan also wants to curb rising sugar prices during Ramadan.
Pakistan broke business relations with India, provoked by Jammu and Kashmir to abolish Article 370
In fact, there has been very little cotton production in Pakistan and traders were finding it very expensive to import cotton from the US, Brazil, and Uzbekistan. It takes about two months to reach the raw materials from these countries, but from India not only this raw material is cheaper but it also reaches in two-three days.
Five dealers from Pakistan told, sellers have also started collecting information about the purchase of Indian sugar and cotton. The import of both these goods from India will provide a major relief to the domestic market. Arun Shekhasaria, MD, Exporter DD Cotton, said that Indian cotton imports from Pakistan would be 4 to 5 percent cheaper than imports from other countries.
Cotton is the largest import from India
Pakistan imports the most cotton from India. Pakistan imported $ 553.33 million worth of cotton from India in 2018-19. India's cotton exports to Pakistan fell to $ 642 million in 2019-20.
Sugar imports increased
Sugar imports increased by 6296 percent to 278,733 MT in July-February 2020-21 as compared to 4358 MT in the same period in 2019-20. Pakistan spent $ 126.99 million on imports.
Goods coming from Pakistan to India
India imported 19 major products from Pakistan, mainly dry food, fresh fruits (guava, mango, and pineapple), cement, finished leather, spices, wool, rubber products, minerals, and ores.
Goods sent by India to Pakistan
Pakistan prominently imports 14 items including tomatoes, tea, sugar, oil cakes, cotton yarn, tires, rubber, dye, petroleum oils, raw cotton, chemicals from India.
Top Goods Trading with Pakistan 2018-19
Exports (million dollars)
Organic Chemical 45.77
Paints, Dye 11.45
Machinery & Parts 9.49
Import (million dollars)
Mineral Fuel 131.3
Salt, stone 92.84
Leather Products 6.27
Comparison of America and china
Country export-import business
America 52.41 35.55 87.96
China 16.75 70.32 87.07
Pakistan 2.06 0.49 2.56
(Figures in billion dollars)