The government’s decision to close the Attari-Wagah border has raised significant concerns among cross-border traders and passengers who rely on the land route between India and Pakistan. With this move, all passenger travel has come to a halt, and the limited trade activity that remained will also be disrupted. This decision is poised to have lasting effects on the local economy, international trade relations, and regional mobility.
The Attari-Wagah border, situated in the Amritsar district of Punjab, has been one of the last points of direct road access between India and Pakistan. Despite strained diplomatic ties, the border has remained functional for certain passenger services and a limited volume of trade. According to official figures, over 70,000 passengers crossed the border in the fiscal year 2022-2023, primarily for familial, religious, and diplomatic purposes. The flow of goods, though not extensive, accounted for nearly 7,000 consignments worth an estimated Rs 3,900 crore during the same period.
Passenger traffic had already been curtailed due to the ongoing diplomatic tension, with strict limitations on travel permits and the duration of stays. The daily bus service between Amritsar and Lahore, which was once a symbol of Indo-Pakistani people-to-people contact, was reduced to a sporadic schedule, catering to a small number of passengers with special permits. The official closure of the border has now ended this possibility entirely, leaving both the cities without direct, overland connection. This change will primarily affect those with familial ties across the border and individuals engaged in cultural and diplomatic exchange programs.
For traders, the disruption of the land trade route is particularly concerning. The Attari border had been one of the few points where goods could flow between India and Pakistan, albeit in a limited capacity. While the bulk of trade between the two nations occurs via sea routes, the land route had been used for certain high-value goods, such as textiles, agricultural products, and machinery. The closure not only severs the already limited trade but also threatens to cripple small businesses that depend on these goods crossing the border.
Local businesses in the border regions of Punjab are already feeling the economic impact of this decision. With the loss of the passenger service, there is an additional concern about the economic viability of the border towns, which had previously relied on tourism and the movement of people across the border. Hotels, transportation providers, and local vendors who catered to cross-border passengers will now face an uncertain future. For these towns, the closure of the Attari border marks the loss of a key economic lifeline that had allowed them to continue despite the larger geopolitical challenges.
The decision also has implications for diplomatic relations between India and Pakistan. The two countries have had a complicated history with regard to trade and people-to-people contact, and while official channels of communication have remained open, many informal exchanges took place at the border. With the border now closed, there is a risk that relations between the two nations could become further entrenched, with limited opportunities for engagement and dialogue.
At a broader level, the closure also raises questions about the future of cross-border transport in the region. The decision has reignited discussions about the broader economic and geopolitical ramifications of shutting down land routes, particularly in a region where there is a growing demand for increased trade and movement of goods. The shutdown has reignited calls for both countries to find alternative means of engagement and trade, such as via rail links or third-party trading partners, to keep the flow of goods between India and Pakistan alive in some capacity.
While the governments of both India and Pakistan have largely refrained from public comment on the closure, analysts suggest that the move aligns with the broader strategic objectives of the Indian government to limit its engagements with Pakistan. In a broader geopolitical context, this decision may be seen as a response to continued tensions in Kashmir and the broader South Asian security landscape.
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