New Delhi, March 8, IRNA — Due to tumultuous situation in Pakistan, India-Pakistan trade will nose-dive 60 percent in 2009-2010.
The total trade at present is little over two billion US dollars and this figure is likely to decline to about $900 million.
The situation in Pakistan has created a fear psychosis among bussinessmen, who say that cross-border travel has been a major casualty following the recent developments in the neighboring country.
‘Wait and Watch’ is the preferred strategy for many, and there is great unwillingness on the part of Indian exporters to travel to Pakistan to conclude even the firmed up deals, said a survey conducted among Indian exporters and importers by India’s Bussiness Chamber — Federation of Chamber of Commer and Industry (FICCI).
The survey points out that some of the companies have already increased their stock of inventories at Dubai and Singapore to service the Pakistani market.
Some representatives also opined that following the recent terror attack on Sri Lankan cricket team, trade between Pakistan and other nations from the SAARC region would also take a hit.
It is also likely that companies from Sri Lanka may start sourcing more quantity from Indian companies instead of Pakistani companies.
The key sectors that would see a significant dip in cross border trade include textile and apparel, textile machinery, cotton, agricultural products particularly cereals, steel and chemicals.