Markets melt, Indo-Pak trade freezes Volume down by 50 per cent; trucks stand still, traders worried The financial meltdown and strengthening of the US dollar has hit the Indo-Pak trade through Attari-Wagah border land route hard. The traders are worried, as there has been over 50 per cent fall in the total volume of export and import. There has also been a decrease in demand of various commodities, including green vegetables, in Pakistan. So dismal is the situation that no goods truck was able to cross over to Pakistan in the last two days. The Pakistan’s economy is experiencing troubled times with inflation escalating, leading to a sharp fall in the demand of daily need commodities. “The financial trouble worldwide has impacted the Indo-Pak trade too due to the ripple effect in the Asian markets. There is insecurity in Pakistan’s market, and strengthening of the US dollar against Pakistani Rupee is adding to our woes,” said Rajdeep Uppal, a leading exporter of goods to Pakistan. Uppal said import of cement from Pakistan and export of vegetables, especially green chilies, tomatoes and potatoes, livestock, meat and some electronic goods, had given a major impetus to the trade between the two countries earlier this year. “The year began on a promising note, as trucks were allowed to cross over to the international border. The trade was picking up when financial upheaval led to the slowdown, which is worrisome,” said Om Parkash, alias Latti Shah, president of the Amritsar-Lahore Exporters-Importers’ Association. He said fluctuation had started in June, but October was the worst month, as now only potatoes were in demand in Pakistan. “The lower liquidity and extra caution being taken by the banks to give credit is yet another reason for the lull,” said Shah, adding that 5 per cent duty being imposed by the Pakistan’s government on imports from India was a big hurdle in bilateral trade. The last available figures show that the volume of trade had touched Rs 800 crore annually, but if the meltdown continues, the figure would fall to Rs 400 crore. The Customs Department figures reveal that import of cement from Pakistan had started a year ago and its volume rose from 480 metric tonnes in 2007 to 60,000 metric tonnes in April-May this year. “But then the steady decline started and volume of cement import could not go beyond 35,000 metric tonnes in August-September,” said Customs officials. Customs and Excise Commissioner Talkeshwar Singh admitted that the number of trucks crossing over has fallen by 50 per cent. “There is a decline in the volume of trade, as markets are volatile at present,” he said. However, Gunbir Singh, state vice-convener of the Confederation of Indian Industries (CII), said the slowdown of trade through Attari was a short-term effect. “To beat the inflation, Pakistan will have to open trade of common goods from India. It is only a matter of time. I feel that the trade will bounce back to the original volume again,” he said, adding that business would cross the figure of Rs 1,000 crore.
