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India Shuts Wagah-Attari Route and Cancels SAARC Visas for Pakistan: How Trade and Regional Ties May Shift

Written by: Team Angel OneUpdated on: Apr 24, 2025, 3:04 PM IST
India’s closure of the Wagah-Attari route and revocation of Pakistani SAARC visa privileges signal a diplomatic shift that may disrupt trade and people-to-people links.
India Shuts Wagah-Attari Route and Cancels SAARC Visas for Pakistan: How Trade and Regional Ties May Shift
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In the wake of the recent Pahalgam terror attack, India has implemented sweeping measures aimed at curbing cross-border movement. Central to these actions are 2 major decisions: the closure of the Attari-Wagah Integrated Check Post and the cancellation of SAARC Visa Exemption Scheme (SVES) privileges for Pakistani nationals. These steps underscore New Delhi’s resolve to adopt diplomatic and logistical responses to perceived national security threats.

Foreign Secretary Vikram Misri announced the measures, emphasising that those who have already crossed over into India via the Attari route with valid endorsements may return before May 1, 2025.

Closure of Attari-Wagah Border: A Trade Lifeline Severed

The Wagah-Attari crossing, located near Amritsar in India and Wagah in Pakistan, has long served as the only land-based trade corridor between the two nations. Despite a steady deterioration in bilateral relations over the years, the route remained open for trade in selected goods and facilitated limited passenger movement.

Exports from India via this corridor have included items such as soybeans, red chillies, chicken feed, plastic granules, and yarn. Pakistan, in turn, has exported commodities like rock salt, gypsum, dry fruits, cement, and herbal products. The route has also functioned as a key logistical channel for trade between India and Afghanistan.

In 2023–24 alone, the Attari Land Port, spread over 120 acres and connected to National Highway I, facilitated trade worth ₹3,886.53 crore, saw 6,871 cargo movements, and managed 71,563 passenger crossings. Its sudden closure is expected to disrupt not only bilateral trade but also regional supply chains.

According to the news reports, Pakistan imported $26.8 million worth of goods from India in February 2025—a 28% increase from the $20.94 million recorded in February 2024.

Cancellation of SAARC Visa Privileges for Pakistan

In a parallel move, India has revoked access for Pakistani citizens under the SAARC Visa Exemption Scheme. The SVES was designed to promote ease of travel among member states by exempting certain categories of individuals, such as parliamentarians, diplomats, and senior officials, from requiring visas for inter-country movement.

This revocation effectively dismantles one of the last remaining formal frameworks that enabled cross-border interaction, further straining regional cooperation under the SAARC umbrella.

Strategic Significance of the Moves

The decisions were announced following an emergency Cabinet Committee on Security (CCS) meeting. Alongside the border and visa restrictions, India has expelled Pakistani military advisors and pulled back its defence personnel stationed in Islamabad.

These developments signal a broader recalibration of India’s strategic stance towards Pakistan, moving away from people-to-people diplomacy and confidence-building measures to a policy shaped by hardline national security concerns.

Read More: Good News for Harley-Davidson Lovers: India May Drop Import Tariffs on Luxury Bikes in US Trade Talks

Conclusion 

While the primary objective of these measures is to address immediate security concerns, their ripple effects may be felt across sectors. Disruption in trade could hurt regional exporters and traders, and the breakdown of SAARC mechanisms may further isolate Pakistan from regional platforms.

Moreover, with the closure of the only active land route for bilateral commerce, the future of trade, even at reduced levels, remains uncertain unless alternative diplomatic channels are explored.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Apr 24, 2025, 3:03 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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