Relations between Indian and Pakistani business people may deteriorate depending on the level of involvement Pakistan had in the attacks on multiple sites in Mumbai that left at least 188 people dead.

During previous fall-outs between India and Pakistan, traders from Pakistan have found it more complex and expensive to obtain letters of credits (L/Cs) for trades with India, but so far there has been no such impact, according to a Pakistani business leader.

Reconfirmation

During conflict between the two states in 1999 in the Kargil district of Kashmir, Indian businessmen asked their Pakistani counterparts to have L/Cs reconfirmed by international banks, according to the former president of Karachi Chamber of Commerce and Industry (KCCI), Amjad Rafi.

He says that his Indian partners made the same demand after terrorists attacked the Indian parliament in New Delhi in 2001.

Additional costs

The L/C reconfirmations from international banks apparently cost Pakistan's traders an additional 1 per cent of the invoice value.

"No such demand has been made this time," according to the former KCCI president.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.