India-Pakistan Trade Halts After Pahalgam Attack

On April 22, 2025, a deadly terrorist attack in Pahalgam, Jammu and Kashmir, claimed 26 lives mostly tourists and plunged India-Pakistan relations into a fresh crisis. The attack, carried out by The Resistance Front (TRF), a proxy of Pakistan-based Lashkar-e-Taiba, prompted immediate and severe retaliatory measures from India. The Indian government responded by closing the Integrated Check Post (ICP) at Attari, the only active land trade route between the two countries bringing cross-border commerce to a standstill.In retaliation, Pakistan suspended all trade with India, including indirect trade via third countries such as the UAE. This standoff has now escalated into a full-blown diplomatic and economic confrontation, with both sides suffering consequences particularly small traders and regional economies that relied on this trade route.Since its inauguration in 2012, the Attari ICP has served as a critical commercial and cultural conduit between India and Pakistan. In FY 2023-24 alone, the route saw trade worth ₹3,886.53 crore (approx. $465 million), along with 6,871 cargo movements and over 71,000 passenger crossings. India exported products like poultry feed, soybeans, yarn, vegetables, and red chillies, while imports from Pakistan included rock salt, dry fruits, cement, gypsum, and herbs.However, bilateral trade has been in decline since India imposed a 200% duty on