The bilateral trade between Pakistan and India is expected to decline by 20 per cent in 2012-13 due to the ongoing tensions at the Line of Control ( LoC), Assocahm today said.
“Trade between India and Pakistan may dip by 20 per cent in 2012-13 due to the current disturbances on the borders and also within Pakistan,” the chamber said in a statement.
During the first half of the fiscal year, the two-way trade stood at $ 1.1 billion, it said.
“The on-going atmosphere will have its own repercussions and will be reflected on cross-border trade. Also, Indian businessmen and small merchants who were contemplating trade relations with Pakistan have put their plans on hold,” it added.
Assocham said that in 2011-12, the bilateral trade stood at USD 1.9 billion.
India’s export to Pakistan in the last fiscal declined by 25 per cent to
$ 1.5 billion, it said adding, however, imports from Pakistan grew by 48 per cent to $ 400 million.