KEY POINTS
- All direct and indirect imports from Pakistan have been banned, effective May 2, 2025
- Pakistani-flagged vessels are no longer allowed to dock at Indian ports
- A new clause (Para 2.20A) added to India’s Foreign Trade Policy 2023 formalizes the import ban
India has decided to completely stop all direct and indirect imports from Pakistan following the recent terror attack in Pahalgam, Jammu and Kashmir. India has also banned Pakistani ships from entering its ports. This action is part of a larger plan to take strong steps against Pakistan, which India says is helping terrorists who carry out attacks across the border.
New Trade Rule Added In Foreign Trade Policy
The Commerce Ministry has announced a new rule under India’s Foreign Trade Policy 2023. A new section—Para 2.20A—says that India has banned the import or movement of all goods that come from Pakistan, whether directly or indirectly. This means even goods from Pakistan that were entering India through other countries like the UAE, Singapore, or Sri Lanka are now not allowed.
The ban started on May 2, 2025, and will stay in place until the government decides otherwise. The rule has been made to protect India’s national security and public interest. Any exception will need special permission from the Indian government.
Also, in another strict move, India has stopped all Pakistani ships from entering its ports. The notification said, “This order is issued to ensure the safety of Indian assets, cargo and infrastructure, in the public interest and in the interest of Indian shipping”.
Trade Routes Affected
Trade between India and Pakistan through the Attari-Wagah border—the only land trade route—was already stopped earlier. Even so, goods worth ₹3,886 crore were traded through this route in the 2023-24 financial year. Now, after India’s new ban on imports from Pakistan, Pakistan has also hit back by stopping all trade with India. This has made tensions between the two countries even worse.
Experts say that small businesses and traders in Pakistan will suffer the most from India’s strict actions, as they depend heavily on trade with India.
Counteraction After Deadly Terror Attack
These actions come just days following a deadly terror attack in Pahalgam, where 26 innocent people were killed. A terror group based in Pakistan took responsibility for the attack. In response, India has not only made trade rules stricter but also stopped the Indus Water Treaty. This is a long-standing agreement between India and Pakistan about sharing river water.
Pakistan then reacted by suspending the Shimla Agreement of 1972, which was meant to help keep peace between the two countries. It also closed its airspace to Indian airlines. In return, India banned Pakistani airlines from using Indian airspace.
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