India on high alert as Pak goods worth over Rs 4 crore likely entering markets via third countries

Despite a ban on the import of Pakistani goods in India, the latter is on high alert to ensure that any attempts made by Islamabad to access the Indian market through other countries are thwarted.

As per a PTI report, goods like dry fruits and chemicals worth $500 million (Rs 4,216 crore) are believed to be entering India through third countries including the UAE, Singapore, Indonesia and Sri Lanka, an official said.

India's decision to ban the direct and indirect import of Pakistani goods comes at a time when tension between the neighbouring countries is increasing after a terror attack near Kashmir's Pahalgam left 26 people injured, most of who were tourists.

“The idea is to choke Pakistani exports as Pakistan’s economy is already crippled and vulnerable,” Hindustan Times quoted a source as saying.

Though the 200 per cent import duty imposed on Pakistani goods in 2019 after the Pulwama terror attack had effectively halted direct imports, the latest decision also prohibits the entry of Pakistani goods routed through third countries.

However, as per reports, a substantial proportion of $500 million exports from Pakistan which were earlier directly exported to India are now being rerouted through other countries.

While Pakistani fruits, dry dates, leather, and textiles are repackaged and relabeled in the UAE for exports to India, chemicals are likely to be routed through Singapore.

Similarly, Indonesia is being used as a transit route for Pakistani cement, soda ash, and textile raw materials. From Sri Lanka, it is expected that Pakistani dried fruits, salt, and leather goods were being shipped to India.

"This comprehensive ban imposed by India including a ban on indirect exports would enable the customs authorities to prevent Pakistan exports from entering India through circumvention," PTI quoted the official as saying.

Meanwhile, Pakistan in retaliation closed its airspace for Indian airlines, and banned Indian-flagged ships from entering its ports.

(With PTI inputs)