ISLAMABAD, Dec 31: India will suffer a net loss of over $200 million annually in overall trade with Pakistan as a result of suspension of air, train and bus links between the two nations, should this suspension stays that much longer, an investigation by Dawn has revealed.
According to official figures made available to Dawn, Pakistan imported goods worth $235 million from India during the year 2000-2001 as against import bill of $127 million from India during 1999-2000, registering an increase of 46 per cent.
On the other hand, Pakistan exports to India registered a growth of 1.8 per cent and stood at $55 million during 2000-01 financial year as against $54 million during 1999-2000.
The figures showed that the Indian exports to Pakistan was about five times more than Pakistan exports to India.
Analysts said that following the suspension of land routes between the two countries and the escalation of tension on borders, India will have a loss of around $250 million in trade while Pakistan will suffer a loss of around $50 million only in the year under review.
It may be added that the official trade was carried out between the two countries by train, as there was no direct shipping service between them.
The official figures showed total exports of Pakistan to India at $55 million during 2000-2001 financial year, which mainly included $35 million fruits and vegetables, $5 million crude vegetables, $2 million cotton yarn, and $7 million tarpaulins/tents.
Indian exports to Pakistan during 2000-01 financial year totalled $235 million, which mainly included $91 million sugar, $22 million feeding stuff for animals, $40 million chemical elements and compounds, $13 million iron and steel, $11 million chemical products and $10 million tyres and tubes exports.
Pakistan exports to India comprise fruit in the main, which will have no impact on Pakistan’s industry, while Indian exports to Pakistan mainly included industrial goods. This is likely to have a far-reaching impact on the Indian industry.
The analysts feared that due to the severing of land route between the two countries goods would also become costlier.
Moreover, the suspension of bus service between the two countries would result in the loss amounting to Rs80,000 to each nation per week, said an official source in the Pakistan Tourism Development Corporation.
Two buses from each side plied between Lahore and New Delhi. The net earning of each bus was Rs40, 000 per week, having a capacity of 40 passengers.
Furthermore, due to a ban on use of airspace by both countries, Indian airline would suffer five times bigger revenue loss than Pakistan’s national flag carrier, an official source in PIA told Dawn.
Pakistan airliner had suspended all its 12 weekly flights to India, while there were another 13 flights, which flew over Indian airspace which also stand halted for the time being till their re-routing or permanent termination.