India Suspends All Inbound Mail and Parcel Exchange from Pakistan

On Saturday, India ceased exchange of any form of inbound mail and parcels from Pakistan through air and surface mode.

Earlier, ET had mentioned that suspending postal exchange between the two countries was a possibility.

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This latest decision has been preceded by earlier bans on imports and shipping earlier today as tensions rise between the two nations following a deadly terror attack in Pahalgam in India's Kashmir on April 22.

The Directorate General of Foreign Trade stated in its notification dated May 2 that the prohibition shall take effect immediately. The Indian government has inserted a new Para 2.20A in Foreign Trade Policy, 2023, titled Prohibition on Import from Pakistan.

"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. This restriction is imposed in the interest of national security and public policy. Any exception to this prohibition shall require the prior approval of the Government of India," as per DGFT Notification dated May 2.

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The trade ban is expected to adversely affect Pakistan's troubled processing sector, which depends on cross-border trade for items such as cement, textiles, and agricultural produce. As the trade ban already considers a limitation to trade formality, it may also feel the pinch of informal trade routes, thus increasing the economic pressure.

Also, according to an official announcement made today, any vessel flying the flag of Pakistan will not be allowed to visit Indian ports and vice versa for Indian flag vessels docking at Pakistan ports.

The order, citing reasons of national security, said that it was enforced to "ensure the safety of Indian assets, cargo and related infrastructure, in public interest and for the interest of Indian shipping". The order came into effect immediately and will remain in force until further notice.

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