Amritsar/Islamabad: After the Pahalgam terror attack, India closed the Attari Integrated Check Post (ICP) with immediate effect on 23 April 2025. This check post is the only authorized trade land route between India and Pakistan, through which trade worth Rs 3,886.53 crore took place in 2023-24. This closure will affect the economies of both the countries, but experts believe that Pakistan will suffer more than India. Let us know on the basis of facts how this decision will affect both the countries.
Importance of Attari Check Post
The Attari check post, which is 28 km from Amritsar and connected to National Highway-1, is India's first land port. It is important for India-Pakistan trade as well as imports from Afghanistan. India exports soybean, poultry feed, vegetables, red chillies, plastic granules and yarn through this route, while imports dry fruits, gypsum, cement, glass, rock salt and herbs from Pakistan. In 2023-24, 6,871 cargo movements and 71,563 passenger movements were recorded through this route.
Economic impact on Pakistan
The closure of the Attari check post is a major blow to Pakistan's already weak economy. Pakistan's Karachi Stock Exchange (KSE-100) fell 2,500 points (2%) to close at 1,14,740.29 on April 24. The International Monetary Fund (IMF) cut Pakistan's 2025 GDP growth forecast from 3% to 2.6%, with global trade tensions and US tariffs also contributing.
Pakistan's economy is dependent on exports through this route, especially dry fruits, gypsum and cement. Moreover, Pakistan's land route is crucial for sending goods from Afghanistan to India. The blockade has also halted Afghan imports, such as dry fruits and apples, causing Pakistan to lose transit fees. Analysts say Pakistan's food security and the livelihoods of small traders will be deeply affected.
Economic impact on India
India will also be impacted by the blockade, especially in the Amritsar-Attari region of Punjab. The region is dependent on thousands of jobs directly and indirectly from the trade, including transporters, porters, shopkeepers and small industries. Exports of products such as straw reapers and cotton yarn from Punjab will be affected. Straw reaper exports fell to 100 units in 2019-20, and may now stop altogether.
However, the damage is limited compared to India's economy. India's total exports ($1.21 billion in 2024) and strong domestic market will push it to alternative trade routes. Moreover, India's stock market remained stable despite the tension, with the Sensex closing 520.90 points higher at 80,116.49 on April 23.
Small traders and local impact
Traders like more than 1,400 porters and local dhaba owners in Punjab will be affected by the shutdown. "Though business will be affected, we are with Prime Minister Modi's decision," said a trader from Amritsar. On the other hand, small traders and transporters in Pakistan are already grappling with inflation and social unrest.
Impact on Afghan trade
The Attari check post was the main route for goods coming to India from Afghanistan, such as dry fruits and apples. 40-45 Afghan trucks used to pass through this route every day, which have now stopped. This will affect the supply of Afghan goods to India, but India can compensate for it by increasing imports from sea routes or other countries.
Who will lose more?
Experts believe that Pakistan will suffer more from this shutdown. Pakistan's economy ($340 billion) is much smaller and weaker than India's ($3.9 trillion). India has alternative trade routes and strong domestic demand, while Pakistan's dependence on this route was greater.
Conclusion
The closure of the Attari check post is an economic challenge for both India and Pakistan, but its impact on Pakistan will be far more profound. India's local economy, especially Punjab, will be affected, but the country's strong economic condition is able to withstand it. On the other hand, this is a big blow to Pakistan's already troubled economy and small traders. This move will further increase tensions between the two countries, and its long-term impact will depend on regional trade and stability.
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