Attari border closure: Impact on India-Pakistan trade

In response to the terrorist attack in Pahalgam, Jammu and Kashmir, India has announced the immediate closure of the Integrated Check Post (ICP) at Attari, located on the India-Pakistan border in Punjab’s Amritsar district. The decision was reportedly taken during a meeting of the Cabinet Committee on Security (CCS) chaired by Prime Minister Narendra Modi on April 23.

Where is the Attari-Wagah Border Located?

Attari and Wagah refer to the same international border between India and Pakistan. Attari is the name of the village on the Indian side, while Wagah is on the Pakistani side. Located about 28 kilometers from Amritsar, Attari is an important land port for India and serves as the only authorized land route for trade with Pakistan. Spanning 120 acres and directly connected to National Highway 1, the check post plays a crucial role in cross-border trade, especially in imports from Afghanistan.

This border post is also famous for another reason: on festive occasions such as Eid for Muslims and Diwali for Hindus, soldiers from both sides exchange sweets as a gesture of goodwill. On April 23, India’s Foreign Secretary Vikram Misri clarified that, for a limited period, the border will remain open for returnees to Pakistan. Those who crossed over with valid authorization can return through this route by May 1, 2025.

How Important is the Attari Border?

The Attari check post is a critical trade route between India and Pakistan. Through this corridor, India exports goods such as soybeans, poultry feed, vegetables, red chilies, plastic granules, and plastic yarn. Imports from Pakistan include dry fruits, dates, gypsum, cement, glass, rock salt, and various herbs. Although trade volumes have declined since tensions escalated in 2018, the corridor has continued to significantly facilitate the movement of goods and people.

What Will Be the Impact on India-Pakistan Trade?

According to statistics for the fiscal year 2023-24, the Attari-Wagah corridor recorded trade worth ₹3,886.53 crore, facilitated 6,871 goods shipments, and saw the movement of 71,563 passengers. The closure of the Attari land port will have a significant economic impact on both goods and passenger traffic. Small businesses and low-capital manufacturers, who rely heavily on this cross-border exchange, will be the most affected. Moreover, a portion of India's imports and exports to and from Afghanistan also passes through Pakistan via the Attari-Wagah route. This transport channel is now likely to face serious challenges.