India bans direct, indirect imports from Pakistan with immediate effect

Huge blow to Pakistan as India now bans all imports after Pahalgam attack

India has banned direct or indirect import of all goods from Pakistan with immediate effect in the interest of national security and public policy, following the Pahalgam terror attack last month, which killed 26 tourists, according to a government order. The decision will completely halt all inbound shipments of goods from Pakistan to India. India’s exports to Pakistan in April-January 2024-25 stood at USD 447.65 million, while imports were meagre USD 0.42 million.

A provision in this regard has been added in the Foreign Trade Policy (FTP) 2023 “to prohibit direct or indirect import or transit of all goods originating in or exported from Pakistan with immediate effect until further orders”, the Directorate General of Foreign Trade (DGFT) said in a notification dated May 2. It added that this restriction is imposed in the interest of national security and public policy. Any exception to this prohibition will require approval of the Government of India, the order said.

Inserting the provision under the heading “Prohibition on Import from Pakistan” in the FTP, it said: “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”. Main imports from Pakistan to India during April-January 2024-25 included fruits and nuts (USD 0.08 million), certain oil seeds and medicinal plants (USD 0.26 million), and organic chemicals.

The decision follows a terror attack in Pahalgam on April 22, in which 26 people were killed.
Following the terror attack, India took a series of measures, including the immediate shutdown of the Attari land-transit post, used for the movement of certain kinds of goods. Besides, India has announced the expulsion of Pakistani military attachés and the suspension of the Indus Water Treaty of 1960. Due to this, the trade between India and Pakistan has already come to a complete halt. The two-way trade between the countries was miniscule following the steps taken by both sides after the Pulwama terror attack in 2019.

In retaliation, Pakistan has also announced the suspension of all trade with India, including to and from any third country through Pakistan. Exports and imports in 2023-24 were USD 1.18 billion and USD 2.88 million, respectively. In 2022-23 and 2021-22, India exported goods worth USD 627.1 million and USD 513.82 million, and imported products worth USD 20.11 million and USD 2.54 million, respectively.

In April-January 2024-25, exports of organic chemicals and pharmaceutical products accounted for about 60 percent of the country’s total outbound shipments to Pakistan. It was USD 129.55 million and USD 110.06 million, respectively. The other items include sugar and sugar confectionary (USD 85.16 million), certain vegetables (USD 3.77 million), coffee, tea and spices (USD 1.66 million), cereals (USD 1.39 million), petroleum products (USD 11.63 million), fertiliser (USD 6 million), plastics (USD 4.16 million), rubber (USD 1.88 million), and auto components (USD 28.57 million).

The India-Pakistan trade relations soured after the Pulwama terror attack. Following that, India raised the import duty to 200 percent on all goods imported from the neighbouring country, including fresh fruits, cement, petroleum products, and mineral ore.

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