The internal turmoil in Pakistan, combined with the global economic crisis, is likely to lead to a drastic fall in trade with the neighbouring country, a survey by the Federation of Indian Chamber of Commerce and Industry (Ficci) said. A similar decline in trade volumes was seen during the Kargil conflict, in mid-1999.
The survey report forecasts that bilateral trade between Pakistan is likely to dip 60 per cent to $0.9 billion in 2009-10, compared with about $2.2 billion expected in 2008-09.
“... There is great unwillingness on the part of Indian exporters to travel to Pakistan to conclude even the firmed up deals. The tumultuous situation in Pakistan has created a ‘fear psychosis’ amongst Indian exporters and importers. Since conclusion of business deals requires multiple two-way visits and no prospects of direct visits being foreseen in the near future, generating fresh business will become an onerous task according to many companies,” said the Ficci survey.
