Huge Blow to Pakistan: India Imposes Total Import Ban After Pahalgam Attack

Huge Blow to Pakistan: The Government Order, which was released on May 2, 2025, claimed that due to national security and public policy, India has forbidden the direct or indirect import of all goods from Pakistan with immediate effect following the Pahalgam terror attack last month that took 26 lives, most of whom were tourists.

India-Pakistan trade will be fully cut off on this account. Exports from India to Pakistan between April 2023 and January 2024 stood at $447.65 million, with a mere $0.42 million of imports.

This provision has been duly incorporated in the 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.

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"These restrictions are in the interest of national security and public policy," it said. “Any exception to this prohibition will require approval of 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.”

The main items of import from the neighbouring country during the period, namely April-January 2024-25, consisted of fruits and nuts ($0.08 million), certain oil seeds and medicinal plants ($0.26 million), and organic chemicals. The order follows a Pahalgam terror attack on April 22 that killed 26 people.

The subsequent measures, taken after the terror attack, also include immediate closure of Attari land transit point for trade purposes. Further, India announced expulsion of Pakistani military attaches and suspension of Indus Waters Treaty of 1960.

Minuscule trade

Thus, trade between India and Pakistan had already come to a grinding halt. Affected by the crisis that ensued after the Pulwama terror attack in 2019, normal trades of negligible amounts were largely cut off thereafter by various measures instituted by both nations.

Pakistan, in retaliation, has also stated that it will suspend all trade with India, including consignments to and from any third country through Pakistan. In 2023-24, the exports and imports were $1.18 billion and $2.88 million, respectively.

In the years 2022-23 and 2021-22, India exported goods worth $627.1 million and $513.82 million respectively, while imports were worth $20.11 million in 2022-23 and $2.54 million in 2021-22.

In the period of April-January 2024-25, organic chemicals and pharmaceutical products accounted for nearly 60 percent of Pakistan's total exports to Pakistan. It stood at $129.55 million and $110.06 million respectively.

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Others included sugar and sugar confectionary-$85.16 million, some vegetables-$3.77 million, coffee, tea and spices-$1.66 million, cereals-$1.39 million, petroleum products-$11.63 million, fertilizer-$6 million, plastics-$4.16 million, rubber-$1.88 million, and auto parts-$28.57 million. After the Pulwama terror attack, trade relations between India and Pakistan went downhill.

Soon after, India raised the import duty on all goods imported from the neighbouring country-including fresh fruits, cement, petroleum products and mineral ore-to 200%.

Exports from Pakistan to India for 2017-18 were at $488.5 million. An MFN (most favoured nation) status was also withdrawn from Pakistan by India. This time, fruits and cement were the major items imported from Pakistan. Imposing a 200% import duty is essentially tantamount to an effective ban on imports.

The country had invoked the security exception clause of the WTO in withdrawing MFN status. Both countries are members of the organisation. It was given to Pakistan in 1996 by India but not reciprocated by the neighbour.

According to the MFN treaty, one WTO member country must treat the other trading nation in a non-discriminatory manner in terms of customs duty and other taxes.

Pakistan was to grant the MFN status to India in 2012 but later withdrew because of domestic opposition. Pakistan rather said it was working toward granting India NDMA status but that declaration was never made.

Following the heavy import duty imposed by India on imports from Pakistan, Pakistan suspended trade relations with New Delhi in August 2019. These two countries have had a blood feud for quite some time, mostly because of the Kashmir dispute and other cross-border terrorism administered from Pakistan.

Total trade between India and Pakistan remained $2.41 billion in 2017-18 as against $2.27 billion in 2016-17. India imported goods valued at $488.5 million in 2017-18 and exported goods worth $1.92 billion.

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