Due to the ongoing tensions between India and Pakistan, the Pakistani traders are now moved from the import of Indian goods.
The imports of Indian goods are significantly reduced as the tension created among both countries after the Pulwama attack. Later, India also breached Line of Control and dropped the payload. Next day, Pakistan shot down 2 Indian aircrafts and also captured the pilot.
However, with new economic partnerships as well as increasing uncertainty in regional trading activities, the trade composition between Pakistan and major players, particularly Saudi Arabia, the United Arab Emirates (UAE) and India needs to be further analysed in order to gauge the overall impact.
According to analysts, Pakistan imported more than $2.7 billion of goods from Saudi Arabia and $1.7 billion of products from India in 2017. Saudi Arabia is the fourth largest source of imports into Pakistan while India is the seventh largest source.
In addition, Pakistan imported $7.5 billion of goods from the UAE in 2017, its second largest source of imports after China. Therefore, recent developments will impact the trading patterns for Pakistan.