Partners in Crime

How Smugglers Unite India and Pakistan

A Pakistani Ranger and an Indian Border Security Force officer shake hands at the Pakistan-India joint check-post on the outskirts of Lahore, March 15, 2010. Mohsin Raza / Courtesy Reuters

Smuggling is typically thought of as a vice, but in the context of India-Pakistan relations, it has become a virtue. Since their partition in 1947, the two countries have had tense ties. Each state has a long history of trying to suppress trade with the other through tariffs and other legal barriers. And those barriers have generally proven effective: India and Pakistan have rarely conducted more than 2 percent of their total trade with one another. Politicians from each country have occasionally broached the subject of a normalized trade relationship, but trade talks have tended to be interrupted by diplomatic and military hostilities, including the 1998 Kargil War, the 2003 Indian Parliament attack, and 2008 Mumbai terror attacks.

But if the governments of India and Pakistan have had trouble establishing a productive relationship, businesses on both sides of the border have not. Unable to rely on policymakers to smooth the way for trade, they now

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