India's Import Ban on Pakistan: A Strategic Economic Retaliation

In a significant escalation following the Pahalgam attack, the Narendra Modi government has imposed comprehensive restrictions on all imports from Pakistan, including those routed through third countries, alongside postal and parcel services. This move also restricts Pakistan-registered vessels from Indian ports and bans Indian ships from Pakistani harbors, marking a tougher stance in deteriorating diplomatic relations.

"This comprehensive ban, including indirect imports, will enable custom authorities to prevent Pakistani goods from entering India through circumvention," an official stated, highlighting the second major non-military measure after visa limitations.

What’s Changed?

The Directorate General of Foreign Trade (DGFT) announced a new provision in the Foreign Trade Policy (FTP) 2023, halting all imports from Pakistan due to "national security and public policy" concerns. The provision explicitly prohibits the direct or indirect import or transit of goods from Pakistan, with immediate effect until further orders.

Declining Trade Between India and Pakistan

From April 2024 to January 2025, India's imports from Pakistan plummeted to $0.42 million, a stark drop from $20.21 million in FY23. This decline follows India's 200% duty on Pakistani products post-Pulwama and Pakistan's halt in trade after India revoked Jammu and Kashmir's special status in 2019.

The Real Blow to Pakistan: Rerouting Choked

The significant economic impact on Pakistan stems from the ban on indirect imports, with $500 million worth of goods like dry fruits and chemicals previously entering India via third countries now facing restrictions. This move aims to curb the circumvention of trade bans through intermediary nations.