India bans imports from Pak, bars port access in tough decisions post Pahalgam

New Delhi| May,3: In tough moves in retaliation to the Pahalgam terror attack, India has banned direct or indirect import of goods from Pakistan and barred access of Pakistani ships to Indian ports. While direct imports from Pakistan have been minuscule, some goods were entering the country through indirect channels or via third countries.
As per the Commerce Ministry notification, a newly added provision in the Foreign Trade Policy (FTP) mentions prohibition of “direct or indirect import or transit of all goods originating in or exported from Pakistan with immediate effect until further orders”.
The notification said the provision was imposed in the interest of national security and public policy.Another order by the Directorate General of Shipping said any ship bearing the flag of Pakistan won’t be allowed to visit any Indian port.”This order is issued to ensure the safety of Indian assets, cargo and connected infrastructure, in the public interest and for the interest of Indian shipping,” the order said.
Trade has become the first casualty amid the escalating India-Pakistan tensions, with New Delhi already announcing the closure of trade through the Attari-Wagah border – the only land border crossing between the two countries. In a tit-for-tat measure, Pakistan has also suspended all trade with India. Direct trade between the two countries had already come down sharply after India withdrew the Most Favoured Nation (MFN) status from Pakistan after the Pulwama attack in 2019 that left over 40 soldiers dead. The Attari-Wagah border saw trade worth Rs 3,886.53 crore in 2023-24. India’s strategic moves are expected to have a severe economic impact on small traders and manufacturers in Pakistan. While India’s imports from Pakistan have been minuscule in recent years, some goods are routed through ports in Dubai, Singapore and Colombo to beat trade restrictions. As per data, in 2023-24, India imported goods, mainly agricultural commodities, worth USD 3 million from Pakistan. However, Pakistan is dependent on India for pharmaceutical supplies. With India halting all forms of trade, a rattled Pakistan has earnestly started looking at alternative avenues to meet its pharmaceutical needs.