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India succeeds hurting Pakistan’s trade interest in Afghanistan

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Development of Iranian port Chabahar and connecting road to Afghanistan by India has started showing results causing huge trade deficit for Pakistan. A senior Pakistani official has acknowledged that India has succeeded to penetrate in Kabul declining their market share by more than 50 per cent falling to $ 1.2 billion from $ 2.7 billion during last two years.

According to Dawn, Zubain Motiwala, Chairman Pakistan-Afghanistan Joint Chamber of Commerce and Industry who recently visited Kabul said on Friday that the penetration of India and China into Afghan market has limited Pakistan’s option to retain its market share. He said that India subsidises heavily on its exports. Pakistan has been losing even the traditional markets of flour, men and women’s clothes and red meat.

According to Motiwala, India has been providing goods at subsidised rates to capture the market and are providing air tickets with a 75pc rebate. Afghans find it easy to travel to India with cheap tickets and free multiple visas without police checks.

According to Pakistan Bureau of Statistics, exports to Afghanistan dropped to $1.271bn in FY17 from $1.437bn in FY16. Exports in the first quarter of 2017-18 stood at $319 million. Traditionally Kabul was natural market for Pakistani exports which is now changing because of cheaper products from China and India.

Rising India’s medical tourism has also affected Pakistan. Earlier thousands of Afghans used to visit Peshawar for medical treatment but now they prefer going to India due to cheaper treatments. “Medical tourism of Peshawar, which was mainly due to Afghans, is now at zero level; hospitals in Hayatabad are empty,” Motiwala added.

Large numbers of Peshawar traders have also lost their business. Out of 200 flour mills, about 100 have been closed down due to a drastic fall in the export of flour to Afghanistan.

Movement of containers’ traffic from Karachi port to Kabul have also decreased from average 70,000 to just 7000 which reflects the change of trading route for imported goods to Afghanistan.

Dawn report further says that Pakistan was the biggest supplier of shalwar qameez suits to Kabul which is now shifted to the supplies from India and China. This was a traditional Pakistani item in Afghan market.

India succeeds hurting Pakistan’s trade interest in Afghanistan

Earlier on February 9, Eurasian Times had reported that over 80% of Afghanistan’s cargo traffic has shifted from Karachi seaport to Bandar Abbas and Chabahar ports in Iran. The move comes as a result to Pakistan’s new trade tariffs and inauguration of Chabahar port, which is expected to greatly impact the Pakistan’s role in trade transit for Afghanistan.

In October last year, India shipped its first consignment of wheat to Afghanistan by sea through Chabahar port, launching a trade route bypassing Pakistan. The shipment was sent from Kandla seaport. The shipment was taken by trucks to Afghanistan from the Iranian port.

In May 2016, India, Iran, and Afghanistan had signed a historic three-nation deal to develop the strategic Chabahar port and build a transport and trade corridor through Afghanistan that could halve the time and cost of doing business with Europe.

Since 2001 US-led military operation to remove Taliban government in Afghanistan, militant groups used to attack coalition cargo travelling from Karachi to Kabul in Baluchistan province for black mailing US administration and exerting pressure on Pakistan government.

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India envoy Dinesh Trivedi meets PM Modi after talks with Bangladesh PM Tarique Rahman 

India’s High Commissioner to Bangladesh Dinesh Trivedi met PM Modi after talks with Bangladesh PM Tarique Rahman amid diplomatic tensions.

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India’s High Commissioner to Bangladesh Dinesh Trivedi met Prime Minister Narendra Modi in New Delhi on Tuesday, a day after his meeting with Bangladesh Prime Minister Tarique Rahman in Dhaka.

According to the High Commission of India in Bangladesh, Trivedi sought PM Modi’s guidance on further strengthening the bilateral relationship between India and Bangladesh through a constructive and people-centric approach.

The meeting came a day after Trivedi held discussions with Tarique Rahman on matters of mutual interest and ways to advance ties between the two neighbouring countries.

Dinesh Trivedi Meets Bangladesh PM

During his meeting with Tarique Rahman on Monday, Trivedi conveyed greetings from Prime Minister Modi and reiterated India’s commitment to working with the Bangladeshi administration and its people in a positive, constructive and forward-looking manner.

The two sides discussed issues of mutual interest and explored avenues for strengthening India-Bangladesh relations with a people-centric approach.

The engagement took place at the Prime Minister’s Office in the Cabinet Division at the Bangladesh Secretariat. Trivedi also shared his experience of serving in Dhaka over the previous two months.

Sheikh Hasina Extradition Request

The meeting assumed significance as Bangladesh has expressed hope that India will expedite the extradition process involving former Prime Minister Sheikh Hasina, who was ousted following a student-led uprising in 2024.

According to a statement issued by the Bangladesh Prime Minister’s Office, Dhaka also reiterated its request for India to return individuals it alleges were involved in the killing of Shahid Osman Hadi, a prominent figure associated with the July uprising who was shot on December 12, 2025.

Tarique Rahman stressed the need to create a suitable environment to take forward relations between Bangladesh and India.

Bangladesh Foreign Minister Khalilur Rahman, Prime Minister’s Foreign Affairs Adviser Humayun Kabir and other officials attended the meeting.

India-Bangladesh Ties Amid Diplomatic Friction

The latest high-level engagements come amid diplomatic tensions between the two countries following a virtual press interaction by Sheikh Hasina in New Delhi on August 5.

The event, organised by the Foreign Correspondents’ Club of South Asia to mark the second anniversary of her ouster, prompted strong objections from Dhaka.

During the interaction, Hasina said she remained determined to return to Bangladesh in December and restore democracy, while acknowledging the possibility of imprisonment or a death sentence upon her return.

Bangladesh’s Ministry of Foreign Affairs subsequently registered a strong protest and said the development had affected public sentiment and complicated efforts to strengthen bilateral cooperation.

India has said the government had no involvement in the event. Ministry of External Affairs spokesperson Randhir Jaiswal said it was organised by a private media entity and clarified that New Delhi did not endorse views expressed at the forum.

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Trump, PM Modi will resolve tariff issue over Russian oil trade, says US official

White House Trade Adviser Peter Navarro said Donald Trump and Prime Minister Narendra Modi will resolve the issue over US tariff threats linked to India’s Russian oil trade.

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US President Donald Trump and Prime Minister Narendra Modi will resolve the issue surrounding the threat of US tariffs linked to India’s purchase of Russian oil, White House Trade Adviser Peter Navarro said on Tuesday.

Navarro’s remarks came days after the US Senate passed a bill authorising the US President to impose tariffs of up to 100 per cent on the top five purchasers of Russian oil. The measure argues that such purchases directly contribute to financing Russia’s war in Ukraine.

Navarro comments on India’s Russian oil trade

Speaking to reporters at the White House, Navarro said India was not involved in the oil trade with Russia before the Ukraine war began in 2022.

He alleged that India became heavily involved in the trade after Russia’s invasion and sold refined products on behalf of Russia, which he said helped support the Russian war effort.

“Prior to the Russian invasion of Ukraine, India was not involved in the oil trade with Russia, but afterwards it got heavily involved,” Navarro said.

The White House adviser also claimed that the issue had since been resolved and attributed some of the shift in India’s Russian oil trade to an opinion article he recently wrote in the Financial Times.

Trump and Modi will resolve issue, Navarro says

Navarro said the relationship between Trump and Modi would help address the tariff-related issue.

“The president and your prime minister have a very good working relationship. They are going to work that out amongst themselves,” he said, adding that it was not his place to intervene.

His comments come amid US concerns over countries purchasing Russian oil and proposed measures aimed at imposing additional tariffs on major buyers.

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US Senate passes Russia sanctions bill, India-China face 100% tariff risk

The US Senate has passed a Russia sanctions bill that could allow 100% tariffs on major buyers of Russian oil and gas, including India and China.

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The US Senate has approved a bipartisan Russia sanctions bill that could allow President Donald Trump to impose tariffs of up to 100% on major buyers of Russian oil or natural gas, including India and China.

The legislation was passed by an 86-11 vote and will now move to the US House of Representatives, which is scheduled to reconvene on August 31.

The bill is named in honour of Republican Senator Lindsey Graham, a strong supporter of Ukraine who died on July 11. Graham had pushed for tougher sanctions against Russia over its war in Ukraine.

India and China among major Russian energy buyers

The legislation gives the US president the power to impose tariffs on the world’s top five purchasers of Russian oil or natural gas.

India and China are among those countries, along with Azerbaijan, Hungary and Slovakia.

The bill also contains an exception for countries importing less than 15% of their natural gas from Russia and taking steps to reduce their dependence on Russian supplies.

What does the Russia sanctions bill contain?

Apart from the proposed tariffs, the legislation includes sanctions targeting Russian President Vladimir Putin, senior Russian political and military officials, financial institutions and energy projects.

The bill would also expand US sanctions to older and reflagged oil tankers allegedly used by Moscow to bypass existing restrictions on Russian oil and energy revenues.

At the same time, the White House would have the option to waive sanctions or restrictions if the president certifies to Congress that doing so is in the national interest.

Bill also extends Iran sanctions law

The legislation also contains a provision related to Iran. It would extend the expiration date of the Iran Sanctions Act of 1996 until 2031.

The law penalises companies that invest in Iran’s energy sector.

The bill’s passage in the Senate marks the next step in the US legislative process, but it still needs approval from the House of Representatives before it can move forward.

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