LAHORE: With the cessation of bilateral trade between Pakistan and India due to an ongoing escalation along the border, leading business houses said they were now contemplating a deal with the US, Afghanistan and Central Asia instead.
“Pakistan has cheaper options available for major import of cotton from the US” while cement exporters tend to look for Afghanistan and Central Asian destinations besides supplying for local consumption to meet the growing demand within the country, said Anisul Haq, secretary general of All Pakistan Textile Mills Association (APTMA) Punjab on Wednesday.
If the two countries wish to benefit from direct trade through Wagah, the trade has to be on a level playing field to reap dividends of close proximity and cheaper goods requiring lesser time to deliver consignments, Haq told Arab News. “We do not encourage a reroute of trade through other channels like the Afghan Transit Trade.”
Pakistan’s total trade volume from India, during 2017-18, stands at $2,412.80 million, including total imports worth $1,924.28 million and exports at $488.52 million, according to documents available with Arab News. The major imports from India include cotton, organic chemicals, dyes and chemicals, machinery, raw material for pharmaceuticals, etc., while major exports to India include cement, gypsum, edible and citrus fruits, mineral fuels and oils.
Following the February 14 attack on Indian troops in the Pulwama district of Indian-administered Kashmir, New Delhi had withdrawn the Most-Favored Nation (MFN) status from Islamabad and imposed a 200 percent import duty on Pakistani goods. The unilateral move by India virtually brought all bilateral trade to a halt and truckloads of cement were seen parked inside the Wagah border and returned later.
Younas Dhaga, Secretary to Ministry of Commerce, told Arab News that Pakistan would stick to its stance whereby the Adviser to Prime Minister on Commerce, Razak Dawood had said he would raise the issue of India withdrawing the MFN status at the international forum of the World Trade Organization (WTO) if the stalemate continues.
According to the State Bank of Pakistan’s annual report 2017-18, “The cotton production marked an increase from 10.7 million bales last year to 11.9 million bales in FY18. Yet, cotton production not only missed the target of 13.6 million bales, but also stood lower than the textile industry’s need of 13.2 million bales.”
Traders search for alternatives amid India-Pakistani standoff
Traders search for alternatives amid India-Pakistani standoff
- Businessmen say they prefer to look at newer options instead
- Says New Delhi stands to lose more than Islamabad if economic limitations continue
Closing Bell: Saudi main index rises to 10,894
RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward trend for a third consecutive day this week, gaining 148.18 points, or 1.38 percent, to close at 10,893.63 on Tuesday.
The total trading turnover of the benchmark index stood at SR6.05 billion ($1.61 billion), with 144 listed stocks advancing and 107 declining.
The Kingdom’s parallel market Nomu also rose by 81.35 points to close at 23,668.29.
The MSCI Tadawul Index edged up 1.71 percent to 1,460.89.
The best-performing stock on the main market was Zahrat Al Waha for Trading Co., with its share price advancing 10 percent to SR2.75.
Shares of CHUBB Arabia Cooperative Insurance Co. increased 8.27 percent to SR23.04, while Abdullah Saad Mohammed Abo Moati for Bookstores Co. saw its stock climb 6.17 percent to SR50.60.
Conversely, the share price of Naseej International Trading Co. declined 9.90 percent to SR31.48.
On the announcements front, Arabian Drilling Co. said it secured three contract extensions for land rigs with energy giant Saudi Aramco, totaling SR1.4 billion and adding 25 active rig years to its backlog.
In a Tadawul statement, the company said one rig is currently operational, the second will begin operations by the end of January, and the third — currently suspended — is expected to resume operations in 2026.
Since November 2025, Arabian Drilling has secured seven contract extensions amounting to SR3.4 billion, representing 55 committed rig years.
The three contracts have durations of 10 years, 10 years, and five years, respectively.
“Securing a total of SR1.4 billion in new contracts and expanding our backlog by 25 rig-years demonstrates both the trust our clients place in us and our ability to consistently deliver quality and reliability,” said Ghassan Mirdad, CEO of Arabian Drilling, in a statement.
Shares of Arabian Drilling Co. rose 3.15 percent to SR104.70.
Separately, Alkhorayef Water and Power Technologies Co. said it signed a 36-month contract valued at SR43.35 million with National Water Co. to operate and maintain water networks, pumping stations, wells, reservoirs, and related facilities in Tabuk.
In October, Alkhorayef Water and Power Technologies Co. announced it had been awarded the contract by NWC.
In a Tadawul statement, the company said the financial impact of the deal began in the fourth quarter of 2025.
The share price of Alkhorayef Water and Power Technologies Co. declined 0.49 percent to SR120.70.
