Since this current fiscal year began, the trade between India and Pakistan has been on. in the first eight months of 2016¬-17, the exports from Pakistan to India grew and the imports reduced by 23% as per a report made by State Bank of Pakistan (SBP).
In India’s side, the trade balance remained. As per analysts, the political relations between the countries are worsening and the border tension is on a rise but the bilateral trade continues. The imports to India from Pakistan in the July- February period grew 14% and reached $286 million. However a year ago Exports from India to Pakistan fell by 23% and reached $958.3 million from $1,244 million.
The high demand for cement is the main reason for the increase in Pakistan’s exports to India. To India, Pakistan has been exporting more cement. Leading to lull in the cement industry of the country the cement exports to Afghanistan and South Africa from Pakistan fell down.
In the first eight months of last fiscal, the country has a trade deficit of $672 million with India which was at $993 million in the first eight months of the current fiscal year of Pakistan.