India's Strategic Move Against Pakistan

In a significant escalation following the tragic terrorist attack in Pahalgam, India has decided to close the Integrated Check Post (ICP) at Attari, marking a pivotal moment in Indo-Pak trade relations. Foreign Secretary Vikram Misri announced the immediate closure, allowing only a brief window for returnees with valid endorsements until May 1, 2025.

The Vital Role of Attari in Cross-Border Trade

Attari, India's first Land Port and a crucial conduit for trade with Pakistan, has been instrumental in facilitating the movement of goods and passengers. With trade worth Rs 3,886.53 crore in 2023-24, the closure is set to disrupt the flow of key exports like soybean, chicken feed, and imports such as dry fruits and gypsum.

Impact on Small Traders and Industries

The sudden halt in trade operations at Attari is expected to disproportionately affect small traders and manufacturers reliant on this route for their livelihood. Additionally, the logistical challenges may extend to Afghan imports into India, further complicating the regional trade dynamics.

A Look at the Declining Trade Volumes

Trade volumes between India and Pakistan have been on a downward trajectory since 2018-19, a trend exacerbated by ongoing tensions. The closure of Attari border is likely to deepen the economic rift, with long-term implications for bilateral trade relations.