Attari Border Closure: Trade Takes a Hit as India-Pakistan Tensions Impact Economic Ties | ARCLANTIC
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Attari Border Closure: Trade Takes a Hit as India-Pakistan Tensions Impact Economic Ties

25-04-2025

4 min read

India, Pakistan

The closure of India's only land border commercial route to Pakistan at Attari-Wagah poses major consequences on cross-border trade and leads to shipment delays and severe impact on exporters, along with new worries about Pakistani-Indian economic alliances. Reports indicate the border shutdown results from rising diplomatic tensions, and it will cause heavy delays for hundreds of trucks and containers located on both sides of the border.

The Attari Integrated Check Post (ICP) near Amritsar functions as much as a practical trade portal as it does a ceremonial gateway to Pakistan. Business stakeholders worry about short-term shipping problems and long-term commercial opportunities after the organization blocks commercial transport through its gates.

According to local traders, "The closure has led to containers being stranded, which not only delays shipments but also increases demurrage and warehousing costs." Several traders who operate through Attari are now stuck in limbo as they wait for clarity on when the route might reopen.

Historically, the Attari border has also supported commercial trade in products like tomatoes, ginger, gypsum, rock salt, dry fruits, and cement, but the list has decreased significantly with the passage of time because of unresolved political rifts. The volume of trade through this corridor has already taken a hit in the last couple of years, particularly following the Pulwama attack in 2019, after which Pakistan halted bilateral trade with India. However, restricted transactions were still occurring under special permits and diplomatic comprehension.

Pakistan, too, is feeling the impact. Several industries across the border that relied on Indian imports—particularly raw materials—are facing shortages. Economic analysts suggest that this disruption could further weaken trade ties that were already strained by decades of political discord. Trade between India and Pakistan may not be huge, but it carries symbolic and strategic value. Its closure sends a message beyond economics.

"While the ICP at Attari was never functioning at full potential, it still offered a glimmer of opportunity for businesses hoping to engage in cross-border trade," said a senior trade analyst. "Now, that door seems temporarily shut, if not permanently."

Adding to the distress, small-scale farmers and producers who were exporting perishables to Pakistan are facing the brunt. Without proper cold storage or alternative routes, many fear their goods will go to waste. "Our vegetables and fruits don’t have that long a shelf life. We don’t know what to do next," said a farmer whose truck has been halted at the Amritsar depot.

Diplomatic analysts point out that although trade between India and Pakistan has always remained low relative to their total economic activity, its closure carries symbolic implications and indicates the overall nature of bilateral relations. As political rhetoric intensifies, opening the gate again may not be a priority in the near future.

A customs official at the border explained, "We are awaiting official instructions. Until then, commercial vehicle movement is suspended."

Amid the shutdown, traders have urged both governments to consider the economic fallout and explore alternate arrangements for perishable goods at the very least. Associations representing exporters have already written to the Ministry of Commerce, requesting intervention and clarity.

In a globalised world where regional trade is seen as a tool for peace building, the Attari border closure underscores how quickly geopolitical strain can disrupt everyday commerce. Until normalcy is restored or new channels are negotiated, exporters, farmers, and transporters alike remain at the receiving end of yet another diplomatic deadlock.

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