The tensions between India and Pakistan in the wake of the Mumbai terror attacks have affected a unique form of petty trade transacted through people travelling between the two countries.

The practice -- known as the 'done-trade' business in Pakistan and involving the transfer of small quantities of items like nuts, cigarettes, betel leaves, sarees and cosmetics -- has been hit hard by a drop in the number of travellers between the two countries.

This form of trade, which has been in vogue for over two decades, depends on good relations among the nuclear-armed neighbours and any unpleasant incident especially in India, results in the suspension or slowing down of business, the Dawn newspaper reported on Tuesday.

Many involved in 'done-trade' business at Karachi's Bombay Bazaar have either switched to other businesses or started selling 'jainamaz' (prayer cloth) and other religious items.

A trader, who did not want to be named, said there has been 'very slow movement of goods' through this form of trade as the number of people travelling between the two countries has fallen due to the heightened tensions.

Before the Mumbai attacks, the trader said would deal with two to three persons every day for sending goods to India.

"Now I deal only (with) two to three passengers in a week after the terror incident," he said.

Currently, trade in only a few items like salwar suits and dupattas are being carried out by Pakistanis going to India.

Earlier, Indian sarees would be brought in through 'done-trade' but this has now stopped.

Parcels for 'done-trade' are available at shops for sums ranging between Rs 5,000 and Rs 50,000.

A person has to pay this amount and take the parcel, which can easily be carried and declared as a non-merchandise item.

The shopkeeper will give the Pakistani traveller the phone numbers and address of persons to whom the parcel is to be delivered in Indian cities like New Delhi and Mumbai.

On reaching India, the Pakistani traveller contacts the Indian trader and hands over the parcel. The traveller is paid in Indian currency.

In good times, Pakistani going to India usually carried clothes, T-shirts, CDs, shawls, dates, pista, betel nuts and cigarettes. Travellers arriving from India would bring kaju, betel leaves, sarees and cosmetics.

A trader recalled that prior to the demolition of the Babri mosque in 1992, there were 12-15 traders involved in 'done-trade' business but now only four to five people are active in the field.

"In case political relations between the two countries normalise, not only the done-trade but other trade opportunities will also flourish," the trader said.

Traders in Karachi also conduct 'done-trade' business for other destinations like Bangladesh, Nepal and Sri Lanka. One trader said 'done-trade' with Bangladesh and other countries too had suffered after the Mumbai attacks.