Punjab: Attari-Wagah border closure to hit biz, but traders say they stand with country
Located around 28 kms from Amritsar city, this is the only permissible land route allowed for trade between India and Pakistan and crucial for imports from Afghanistan
With Pakistan suspending all trade with India, including to and from any third country through its territory, trade with Afghanistan via the Attari-Wagah border integrated check post (ICP) has also come to a halt. This will affect the local economy, especially small traders and industries, whose livelihood largely depends on this trade.
Located around 28 kms from Amritsar city, this is the only permissible land route allowed for trade between India and Pakistan and crucial for imports from Afghanistan.
After the Pulwama terror attack in 2019, in which 44 CRPF personnel were killed, the Indian government had restricted import from Pakistan by hiking the custom duty to 200%, from a mere 5%. Since then, import of goods from Pakistan has remained almost stopped.
In August 2019, when New Delhi abrogated Article 370, which gave special status to the erstwhile state of Jammu and Kashmir, Pakistan had ceased all trade relations with India. The neighbouring country had also barred India from exporting goods to Afghanistan, though import of Afghan goods, such as dry fruits, remained normal, even after Taliban took control over the country.
As per the official website of the Land Port Authority of India (LPAI), trade through this route had peaked in 2018-19, touching ₹4,370.78 crore, before the restrictions were imposed by India. The trade witnessed a sharp drop in subsequent years. The lowest trade figure was recorded in 2022-23 at ₹2,257.55 crore. However, the figures showed signs of recovery in 2023-24, reaching ₹3,886.53 crore.
‘Will look for alternative routes’
RS Sachdeva, chairman of PHD Chamber of Commerce and Industry Punjab Chapter, said, “It is Punjab’s bad luck that the trade through Attari-Wagah border has been closed. This will hit the state’s economy and growth. At one point, 10,000 persons worked in the trade through this route. Now, this figure is only 400-500.”
Dry fruit importer Mukesh Sidhwani said, “Though the trade has been halted by Pakistan, we are with our nation first. We will look for alternative routes to import our commodities.”
Expressing similar views, trader Rajdeep Singh Uppal said, “We stand with the government and support its decision.”
Dharam Singh, a sugarcane juice seller, said, “This ICP provides employment to 50 villages of this area. Closing of trade will hit the livelihood of the people, including porters, labourers and owners of eateries”.
“The Pahalgam tragedy demands significant retribution from the perpetrators. However, one definitely does not understand this trade embargo across the Attari-Wagah axis. We have already put up 200% duty, reciprocated by Pak by banning trade across this post. This is more a penalty to the people of Punjab and thus unfair,” says Gunbir Singh, Past Chairman, CII Punjab.