LAHORE/ISLAMABAD — Pakistan has suffered an estimated $40 billion in economic losses since trade with India was suspended in 2019 following the Pulwama terror attack, the chairman of the Pak-India Business Council said on Thursday.

Noor Muhammad Qasuri called on the two countries to restore commercial ties, saying the move would benefit businesses on both sides and create opportunities for investment, tourism and regional cooperation.

The suspension of trade has forced Pakistani businesses to import essential raw materials and other goods from distant markets, increasing transport and freight costs as well as delivery times. Pakistan's pharmaceutical industry depended on raw materials available in India, Qasuri said. Imports from India could help the industry save between $2 billion and $3 billion annually.

Qasuri said the textile sector had also faced additional costs amid a decline in domestic cotton production. Textile mills had been forced to buy cotton from Brazil, Egypt, China and the United States, leading to an estimated additional expenditure of $5 billion.

Pakistan was also importing sugar, fertiliser, cement, petroleum products, iron and steel, vegetables and heavy machinery from distant markets despite India's substantial production capacity in these sectors, he said.

Referring to the decline in the area under cotton cultivation, Qasuri said farmers in traditional cotton-growing regions were increasingly switching to sugarcane, affecting the country's textile industry and the wider economy. He called for better agricultural policies to revive domestic cotton production.

Qasuri said renewed trade would benefit businesses in both countries and open up opportunities for investment, tourism and regional cooperation. Pakistan could also attract more Indian tourists, particularly those wishing to visit religious and historical sites or their ancestral homes and villages.

Referring to regional economic cooperation, he cited India's financial assistance to Sri Lanka during its economic crisis as an example of how neighbouring countries could support each other in difficult times.

"Pakistan and India share historical, cultural and family ties, which could provide a foundation for improved relations," Qasuri said.

The latest data shows Pakistan's imports from India rose nearly 69 per cent in the first quarter of the 2026-27 financial year, reaching $61.74 million, even as direct trade between the two countries remains suspended. India shut the Wagah-Attari border crossing, the only land route permitted for bilateral trade, after the Pahalgam attack in April 2025. New Delhi subsequently prohibited the direct or indirect import and transit of goods originating in or exported from Pakistan. Islamabad announced a suspension of all trade with India, including through third countries, on May 4, 2025.

Despite these restrictions, Indian products appear to be finding their way into the Pakistani market. Experts suggest traders could be routing goods through intermediary countries, where shipments may be stored, repackaged or documented before being exported to Pakistan. The Global Trade Research Initiative has estimated that unofficial Indian exports to Pakistan could amount to $10 billion annually.

The people most affected are consumers and manufacturers in Pakistan, who pay more for the same goods, while middlemen in Gulf and Asian ports collect the margin. An Indian official said in October 2024 that "trade and terror don't mix," tying any normalisation to Pakistan curbing militancy. Until that changes, the trade will continue to run unofficially, at higher cost and through other countries.

With PTI inputs