Source: EasternEye
In a bold move reflecting heightened security concerns, India has officially suspended all imports from Pakistan, both direct and indirect, effective immediately. This sweeping ban follows the May 2, 2025 notification by the Directorate General of Foreign Trade (DGFT) and comes just days after the deadly terror attack in Pahalgam, Jammu and Kashmir, which claimed the lives of several Indian security personnel and civilians.
The government has invoked national security and public policy as the primary reasons behind this decisive measure, further tightening its economic posture against its western neighbor.
According to the updated Foreign Trade Policy (FTP) 2023, a new provision has been added to prohibit “direct or indirect import or transit of all goods originating in or exported from Pakistan”. The ban includes not just cross-border transactions but also third-party trade routed through other countries.
This blanket ban covers all categories of goods—agricultural, textile, chemical, and industrial—and will remain in force “until further orders.”
The ban is being widely interpreted as a direct response to the recent terror strike in Pahalgam, a picturesque tourist destination in Jammu and Kashmir. The attack, allegedly orchestrated by groups with bases in Pakistan, has reignited diplomatic and public fury across India.
Sources in the Indian Ministry of External Affairs stated that the move sends “an unambiguous message that terrorism and trade cannot go hand-in-hand.”
This is not the first time India has taken such a step. A similar trade suspension occurred in February 2019, following the Pulwama terror attack, when India withdrew the Most Favoured Nation (MFN) status granted to Pakistan and imposed a 200% duty on Pakistani goods.
Although bilateral trade between India and Pakistan has historically been minimal compared to other partners, the latest ban adds to a series of deteriorating economic ties:
Major items that will be impacted include:
India's move is likely to create pressure on Pakistani exporters already grappling with a deteriorating economic crisis, high inflation, and IMF loan conditions. The diplomatic strain could widen unless de-escalation measures are taken from both sides.
At the same time, India is expected to tighten surveillance on trade routes via the UAE, Afghanistan, and Central Asia, which have occasionally been used to bypass direct trade restrictions.
Indian political leaders across party lines have largely supported the ban, calling it a “timely and patriotic” decision. National security analysts and trade policy experts argue that such economic sanctions, although symbolic in current trade terms, send a strong geopolitical message.
This move is part of a broader strategy where India is leveraging its economic might and trade policy as instruments of diplomacy. The government has also indicated that any future resumption of trade will be contingent upon “tangible, verifiable actions” taken by Pakistan to curb terrorism and dismantle cross-border terror networks.
Until then, no goods, no exceptions.