In a significant move following the deadly Pahalgam terror attack, the Indian government has announced a ban on all imports from Pakistan, effective immediately.
This decision, revealed in a notification from the Directorate General of Foreign Trade (DGFT) on May 2, is part of India’s revised Foreign Trade Policy (FTP) 2023. The notification states that the ban has been enforced “in the interest of national security and public policy.”
According to the new policy, both direct and indirect imports of all goods from Pakistan are now prohibited. This includes goods that were previously allowed for import, regardless of their status. The policy stipulates that any exceptions to this ban must be explicitly approved by the government.
No Pakistani ships at Indian ports
In addition to the import ban, the Indian government has also taken steps to restrict maritime access. Pakistani-flagged ships are no longer allowed to dock at any Indian ports, and Indian ships are prohibited from visiting Pakistani ports. This move is designed to protect Indian assets, cargo, and infrastructure, and to safeguard the interests of Indian shipping.
The government stated that any potential exceptions to this rule would be evaluated on a case-by-case basis. The order has been implemented immediately and will remain in effect until further notice.
Economic impact of the ban
In the period between April and January 2024–25, Pakistan’s main exports to India included fruits, nuts, oilseeds, and medicinal plants, worth around $0.26 million. During the 2023–24 fiscal year, India’s exports to Pakistan totalled $1.18 billion, while imports amounted to just $2.88 million.
Looking back at previous years, India exported $627.1 million worth of goods to Pakistan in 2022–23, and $513.82 million in 2021–22. On the import side, figures stood at $20.11 million in 2022–23 and $2.54 million the year before.
Notably, organic chemicals and pharmaceutical products made up the bulk of India’s exports to Pakistan, contributing to around 60% of the total exports for April–January 2024–25, valued at $129.55 million and $110.06 million, respectively.
A response to the Pahalgam attack
This action comes in the wake of the tragic terror attack in Pahalgam on April 22, which claimed the lives of 26 people, the majority of whom were tourists. The attack has sparked widespread condemnation and has been a key factor in the government’s decision to sever trade ties with Pakistan.
