Pakistani Goods Still Slipping Through the Cracks: $500 Million Worth of Repackaged Items Making Their Way into India via Third Countries
India braces for efforts aimed at Pakistan's market penetration
Breaking Down the Borders: ## Pakistan's Clever Tactics to Evade India's Import Ban
In the heat of the ongoing feud between India and Pakistan, it seems that Pakistan has devised a crafty way to sneak their goods into the Indian market through third countries like the UAE, Singapore, Indonesia, or Sri Lanka.
According to confidential sources, at least $500 million worth of Pakistani fruits, dry dates, textiles, soda ash, rock salt, and leather items are being relabeled and repackaged in these countries for entry into India. Though official imports from Pakistan are negligible, the government took a stern measure by banning all direct and indirect imports from Pakistan back in May.
One source explained, "The idea is to choke Pakistani exports as Pakistan's economy is already crippled and vulnerable." It all started after India revoked the most favored nation (MFN) status following the Pulwama terror attack in February 2019, citing "incontrovertible evidence" regarding Pakistan's involvement in the attack that led to the demise of CRPF jawans.
Besides stripping Pakistan of its MFN status, India imposed a hefty 200% customs duty on imports from its neighboring country, resulting in a sharp decline in shipments. Pakistani imports that were worth $2.39 million in 2020-21 fell to almost negligible ($0.42 million) in the first 10 months of 2024-25, according to an official.
The Directorate General of Foreign Trade issued a notification last Friday, prohibiting all Pakistani imports, either directly or through third countries. "The order was necessary to arm field formations of customs and other agencies to act on Pakistani products coming through friendlier countries," a second person explained.
However, the ban doesn't seem to be airtight, as our sources disclose. Pakistan's illicit activities in the trade sector reflect the ongoing tension between the two countries, particularly in the wake of the attack on tourists in Pahalgam in April 2025 that left 26 people dead.
India is vigilant in keeping Pakistani goods at bay and has taken strict measures, including:
- Land Border Closure: The Wagah-Attari crossing, the only land border between the two countries, remains closed. This adds to the existing halt in maritime trade and postal services.
- Maritime Trade Halt: Both India and Pakistan have ceased maritime trade, with Indian ships prohibited from visiting Pakistani ports and vice versa. No Pakistani ships are allowed to enter Indian ports either, ensuring the safety of Indian assets.
However, it appears that Pakistan continues to find ways around India's restrictions. Regrettably, these efforts may further exacerbate an already tense situation between the nations.
Related Topics:- India- Pakistan- Trade- Pahalgam Attack
- Despite India's stern measures, such as withdrawing Pakistan's most favored nation status and imposing a 200% customs duty, Pakistani goods continue to find their way into the Indian market by being repackaged and relabeled in third countries.
- The tightening of import policies, including the closure of the Wagah-Attari crossing and a halt in maritime trade, has not been enough to prevent Pakistan's crafty tactics from slipping through the cracks.
- The incontrovertible evidence of Pakistan's involvement in terrorist activities, like the Pulwama attack and the Pahalgam attack, has not dissuaded Pakistan from continuing its illicit activities in the trade sector.
- The current policy of India, aimed at restricting Pakistani imports, seems insufficient as Pakistan continues to maneuver around the restrictions, leading to a strain in diplomatic relations between the two countries.
- The economic implication of this ongoing dispute between India and Pakistan, as billions of dollars worth of goods is smuggled through third countries, could have a significant impact on India's textile and sports industries, among others.
- The government's efforts to maintain a balanced sports culture, which includes encouraging cricket matches between the two nations, may be undermined by the economic tensions and ongoing feud between India and Pakistan.
