New Delhi, Nov 3 (IANS) Pakistan has incurred an estimated $40 billion in economic losses due to trade with India being suspended in 2019, with businesses facing higher sourcing and logistics costs after being forced to import goods from more distant markets, according to the chairman of the Pak-India Business Council.
Noor Muhammad Qasuri said the disruption of commercial ties following the Pulwama terror attack and subsequent tensions had increased transportation costs, freight charges and delivery times for Pakistani businesses that previously relied on imports from India, according to multiple reports.
He said that Pakistan's pharmaceutical industry had depended on raw materials sourced from India and estimated that resuming imports from the neighbouring country could generate annual savings of $2 billion to $3 billion.
Meanwhile, a drop in domestic cotton production imposed additional costs worth $5 billion on the textile sector, while mills were forced to source cotton from Brazil, Egypt, China and the United States, he added.
Farmers in traditional cotton-growing regions are increasingly switching to sugarcane, which could worsen the crisis in future.
Qasuri further said Pakistan was also importing sugar, fertiliser, cement, petroleum products, iron and steel, vegetables and heavy machinery from distant markets despite India's substantial production capacity in these sectors.
The resumption of bilateral trade could lower transportation costs, improve supply chains and make petroleum imports cheaper as Indian oil refineries are geographically closer to Pakistan. Indian agricultural and industrial products could lower production costs for several businesses.
Pakistan lost a large number of Indian tourists, who used to visit religious and historical sites as well as their ancestral homes and villages.
"Pakistan and India share historical, cultural and family ties, which could provide a foundation for improved relations," he said.
Qasuri pointed to India's financial assistance to Sri Lanka during its economic crisis as an example of meaningful regional economic cooperation in difficult times.
—IANS
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