New Delhi– In a sharp escalation following the April 22 terror attack in Pahalgam that killed 26 people, India has imposed a blanket ban on the import of all goods from Pakistan. The decision, driven by national security concerns, is effective immediately and applies to both direct and indirect trade routes.
According to a notification issued by the Directorate General of Foreign Trade (DGFT) on May 2, 2025, a new provision has been inserted in the Foreign Trade Policy (FTP) 2023 explicitly prohibiting the import or transit of any goods originating in or exported from Pakistan. “Direct or indirect import or transit of all goods… shall be prohibited with immediate effect, until further orders,” the order stated.
This development formalizes a move that had been building since the deadly attack in Jammu and Kashmir’s Pahalgam, where mostly tourists lost their lives in one of the deadliest strikes in recent years. The government has clarified that any exceptions to this rule will require prior approval from the Centre.
The key phrase — India bans imports from Pakistan — now defines the latest chapter in the uneasy economic ties between the two neighbours.
Trade Was Already Minimal
Trade between India and Pakistan had already been at a historic low since the Pulwama terror attack in 2019, after which India revoked Pakistan’s Most Favoured Nation (MFN) status and raised import duties on Pakistani goods to 200%. What little remained of bilateral trade has now been fully severed.
During April–January of FY 2024–25, India exported goods worth $447.65 million to Pakistan, while imports from the neighbouring country were a negligible $0.42 million. The bulk of Indian exports included organic chemicals ($129.55 million), pharmaceutical products ($110.06 million), sugar and sugar confectionery ($85.16 million), and auto components ($28.57 million). Imports consisted mainly of fruits, nuts, oil seeds, and some medicinal plants.
India’s move to shut down the Attari land transit post and expel Pakistani military attachés had already signalled a firm policy stance. The suspension of the 1960 Indus Water Treaty added another layer of diplomatic freeze. Now, with this complete import ban, India has sent a strong message that trade will not continue in the shadow of cross-border terrorism.
Pakistan’s Response
In retaliation, Pakistan has also announced the suspension of all trade with India, including through any third country or indirect route. This mirrors the situation post-Pulwama, where both nations curtailed economic engagement sharply.
For reference, total exports from India to Pakistan stood at $627.1 million in 2022–23 and $513.82 million in 2021–22. Imports during the same periods were $20.11 million and $2.54 million respectively — already an insignificant volume.
Way Forward
The decision to ban imports may not cause a major economic dent due to the already low trade volumes, but it signifies the deepening strategic and security divide. With India bans imports from Pakistan now codified in trade policy, it remains to be seen if and when commercial ties will be revived — and under what conditions.
For now, the message is clear: economic engagement will not continue while national security is under threat.
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