India bans all imports from Pakistan amid rising tensions
In response to the brutal terrorist attack in Pahalgam, India has imposed a complete ban on all imports—both direct and indirect—from Pakistan, intensifying the already strained relationship between the two nations.
New Delhi: In response to the brutal terrorist attack in Pahalgam, India has imposed a complete ban on all imports—both direct and indirect—from Pakistan, intensifying the already strained relationship between the two nations.
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Official Notification from the Commerce Ministry
The Ministry of Commerce and Industry issued a notification on May 2 stating:
“Direct or indirect import or transit of all goods originating in or exported from Pakistan, whether or not freely importable or otherwise permitted, shall be prohibited with immediate effect, until further orders.”
The government has cited national security and public policy as the core reasons for the ban. Any exceptions will require prior approval from the Government of India, the notification added.
Trade Policy Update in FTP 2023
The prohibition has been formally included in India’s Foreign Trade Policy (FTP) 2023 to ensure legal and procedural clarity. This amendment bans the import or transit of all goods from Pakistan across all channels.
Trade Between India and Pakistan: A Sharp Decline
Official data reveals a significant decline in trade:
- India’s exports to Pakistan dropped by 56.91% year-on-year from April 2024 to February 2025, totaling $491 million.
- Imports from Pakistan remained at zero during this period.
Top exports to Pakistan in FY25 included:
- Drug formulations
- Sugar
- Bulk drugs
- Residual chemicals
- Auto components
Closure of Attari-Wagah Trade Route
The Attari-Wagah border, the only land trade route between the two countries, had already been closed after the April 22 Pahalgam terror attack.
The Pahalgam Terror Attack: Triggering the Ban
On April 22, at least 26 civilians, including a Nepalese tourist and a local pony guide, were killed by terrorists in Jammu and Kashmir’s scenic Baisaran meadow. Following the attack, evidence of terror links to Pakistan further escalated diplomatic tensions.
Economic Impact on Pakistan
The import ban and mounting political tensions have shaken investor confidence in Pakistan, causing:
- A 4% loss in dollar bonds during April
- A 3% drop in equities, marking the worst financial performance since 2023
In contrast, India’s financial assets remain largely unaffected.
Global Community Calls for Restraint
Global powers, including the United States, have urged both India and Pakistan to exercise restraint and pursue peaceful de-escalation.
