Pakistan’s India imports rose sharply in the first quarter of the 2026-27 financial year despite restrictions on direct and indirect trade between the two countries. Pakistan imported goods worth $61.74 million (approximately ₹5,876 crore) from India between April and June 2026, marking a 69% increase from $36.55 million (around ₹3,478 crore) during the corresponding period last year. Pakistan recorded no exports to India during the same period, according to figures attributed to the State Bank of Pakistan.
The increase has renewed questions about how Indian products are reaching Pakistani markets while bilateral trade remains suspended.
How Are Indian Goods Reaching Pakistan?
Trade experts suggest that some goods may be travelling through third-country hubs, including the United Arab Emirates, Singapore and Sri Lanka, before reaching Pakistan. However, the available import data does not establish the precise routes used or confirm how the products' origins are being recorded.
According to the Global Trade Research Initiative (GTRI), unofficial Indian exports to Pakistan could amount to $10 billion annually. Its founder, Ajay Srivastava, has described the practice as a “grey-zone strategy”, in which goods are shipped to transit hubs, stored in bonded warehouses and subsequently re-exported with altered documentation or labels.
Such arrangements could make Indian-origin products available in Pakistan at higher prices. These claims, however, do not establish that every shipment recorded as an import from India or routed through another country violates applicable restrictions.
Pharmaceuticals Remain a Key Import
Pharmaceutical products are among Pakistan’s important imports from India. India’s pharmaceutical exports to Pakistan reportedly amounted to $208 million up to March 2025. Other products traded between the countries include plastics, petroleum products, dyes, organic chemicals, rubber, coffee, tea, vegetables, spices, dairy products and cereals.
India closed the Wagah-Attari land crossing for trade following the April 2025 Pahalgam terror attack, in which 25 tourists were killed. India subsequently prohibited direct and indirect imports or transit of goods originating in or exported from Pakistan. Pakistan announced a suspension of trade with India, including through third countries, in May 2025.
India-Pakistan Trade Has Declined Sharply
Bilateral trade has deteriorated since 2019, when India withdrew Pakistan’s Most-Favoured Nation status following the Pulwama terror attack. Between 2018 and 2024, trade reportedly fell from $2.41 billion to $1.2 billion.
The latest figures indicate continued demand for Indian products despite the restrictions. Whether the increase reflects indirect routing, documentation practices or other trade arrangements remains a question that the published figures alone cannot resolve.
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