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Passive Entry to Pakistan via Dubai, Singapore, says GTRI
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Indian exports to Pakistan bypass direct trade bans using third-party ports, operating in a complex grey trade zone.
Indian companies are channeling goods worth over ₹85,000 crore ($10 billion) annually to Pakistan by rerouting through intermediary ports such as Dubai, Singapore, and Colombo, according to a report by the economic think tank Global Trade Research Initiative (GTRI). This strategy is employed to circumvent official trade restrictions between India and Pakistan, allowing commerce to continue through indirect routes, reported livemint.com.
Goods are relabelled and shipped via bonded warehouses to access Pakistan’s market amid trade bans.
GTRI’s findings reveal that Indian consignments are sent to intermediary countries, where third-party firms offload them into bonded warehouses — special facilities where goods are stored duty-free while in transit. These goods are reportedly relabelled to reflect new origins, often marked as ‘Made in UAE’, before being shipped to Pakistan. This re-routing tactic not only masks the true origin but allows companies to operate in Pakistan’s market where direct trade is prohibited.
While the practice is not necessarily illegal, it falls into a regulatory “grey zone,” said GTRI founder Ajay Srivastava. “This shows how businesses adapt faster than governments, using creative workarounds to maintain trade flows despite official barriers,” he explained.
Direct trade between India and Pakistan remains halted, pushing Indian firms to find alternate export routes.
The latest available data shows that direct Indian exports to Pakistan stood at just $447.65 million between April 2024 and January 2025. The flow of goods via indirect routes became more prominent after India shut the Attari Integrated Check Post following the Pahalgam terror attack. Pakistan, in response, also suspended all direct trade ties with India.
Despite political tensions, Indian goods continue to reach Pakistan, albeit with added logistical and financial overhead. This alternative route often results in a price markup to cover storage and documentation costs at the intermediary ports.
India’s overall export performance remains strong amid regional complexities.
As per the Ministry of Commerce and Industry, India exported a total of $820.93 billion worth of goods and services in FY 2024–25, up from $778.13 billion the previous year. Major export items include rice, tea, coffee, tobacco, spices, pharmaceuticals, electronic goods, and marine products.
Top export destinations include the United States, Australia, and Kenya, which saw year-on-year export growth of 35.06%, 70.81%, and 98.46% respectively. On the import side, India relies heavily on countries such as the UAE, China, Saudi Arabia, and Russia for essential commodities.
