India Prohibits Imports from Pakistan Due to Escalating Tensions in Pahalgam
India Slams the Brakes on Imports from Pakistan: In a hard-hitting move against Pakistan following the Pahalgam terror attack, India has put a stop to direct and indirect imports from the neighboring nation. This decision, taken in the name of national security and public policy, has sent shockwaves through the region.
The central government's announcement specifies that all imports, regardless of their freedom of import or permitted status, are off-limits starting immediately, until further notice. Any exceptions to this ban necessitate prior approval from the Government of India.
Making an addition to the Foreign Trade Policy (FTP) 2023, a provision has been included to prohibit direct or indirect imports and transit of goods originating in or exported from Pakistan. This notification was published on May 2.
As per research, India's exports to Pakistan have plummeted by 56.91% year-on-year between April 2024 and February 2025, falling to $491 million, with no imports recorded. Major exports to Pakistan in FY25 included drug formulations, sugar, bulk drugs, residual chemicals, and auto components. The Attari-Wagah border, the only active trade route between the two countries, was already closed in the wake of the Pahalgam attack.
In another move, the Ministry of Ports, Shipping and Waterways has barred ships flying the Pakistan flag from visiting any Indian port. Conversely, Indian vessels will not be granted access to Pakistani ports.
A tragic incident occurred on April 22, when at least 26 civilians, including a Nepalese tourist and a local pony guide operator, were brutally killed by terrorists in the picturesque Baisaran meadow in Jammu and Kashmir. As terror links to Pakistan emerged, the already strained relations between the two countries took a turn for the worse.
While Pakistan responded by reciprocally suspending trade, this move seems to have led to a comprehensive trade breakdown between the nations. Small Pakistani traders and manufacturers are predicted to suffer the most from these measures. Additionally, Pakistan, which heavily relies on Indian drug supplies, is now scrambling for alternatives. Furthermore, goods that were previously transported via Dubai or Singapore ports can no longer reach India.
- By 2025, the comprehensive trade breakdown between India and Pakistan might have resulted in a significant drop in India's exports, such as drug formulations, sugar, and auto components, to Pakistan.
- The ban on direct and indirect imports from Pakistan, effective immediately and until further notice, has also prohibited the transit of goods originating in or exported from Pakistan, as per the revised Foreign Trade Policy (FTP) 2023.
- In response to the Pahalgam terror attack, India has taken a political stand, prohibiting ships flying the Pakistan flag from visiting any Indian port, leading to a potential impact on regional maritime activities.
- The prohibition on imports from Pakistan, imposed following the Pahalgam attack, correlates with a decrease in recorded imports from Pakistan, with no imports recorded between April 2024 and February 2025, amounting to $491 million, thus indicating a shift in general news and politics between the two nations.
