The bilateral trade between India and Pakistan through Attari-Wagha border is facing a downturn due to a combination of factors—recession, inflation, imposition of extra import duty by Pakistan on vegetables from India and opening of Muzaffarbad trade route in Jammu and Kashmir.
The data shows a decline in the volume of trade up to 30 per cent, as traders on both sides demand better infrastructures to give fillip to the trade.
During the current financial year bilateral trade through the route stood at Rs 840 crore, while up to same period last year it was Rs 996 crore. The trade had been rising each year especially after the opening of the land route for goods trucks in 2007.
“The recession and inflation have hit the trade. The extra duty by Pakistan up to 20 per cent on Indian vegetables like potatoes and onions has further discouraged the exporters,” said Gunbir Singh, state head Confederation of Indian Industries (CII). The volume of cement and dry fruits coming from Afghanistan via Pakistan has also seen a decline due to low demand, he added.
Besides vegetables, India exports soyabean, tyres, tubes and chemicals, which are also hit by recession. “Earlier spices used to be exported from this route but it had now taken the new route of LoC in J&K,” said Uppal, expressing hope that the trade would again increase in the beginning of next financial year.
According to a CII study, the trade volume through this land and rail route could touch the figure of Rs 2,000 crore annually. “Anne Kruger, an IMF expert, recently quoted an IMF study estimating the potential of trade close to a mammoth 650 billion $ through Attari-Wagah border. But this will happen only if requisite infrastructure and handling facilities are created on both sides,” said Gunbir, adding that relations between two countries must improve to reach the figure.
Source : Indian Express