India bans direct and indirect imports from Pakistan
In a strong retaliation to the Pahalgam terror strike, India has prohibited both direct and indirect imports from Pakistan and denied entry to Pakistani vessels at Indian ports. Although direct imports from Pakistan have been very small, certain products were making their way into the country through indirect routes or through third nations.
According to the notification from the Commerce Ministry, a new clause in the Foreign Trade Policy (FTP) states that there is a ban on the “direct or indirect import or transit of any goods originating from or exported by Pakistan, effective immediately and until further notice.”
The notification states that the regulation was implemented for the sake of national security and public policy.
An another directive from the Directorate General of Shipping stated that no ship bearing the Pakistani flag will be permitted to enter any Indian port.
“This order is issued to ensure the safety of Indian assets, cargo and connected infrastructure, in the public interest and for the interest of Indian shipping,” the order said.
Trade between countries comes to a halt
Trade has emerged as the primary casualty in the rising tensions between India and Pakistan, as New Delhi has already declared the suspension of trade via the Attari-Wagah border, the sole land border crossing between the nations.
In a reciprocal move, Pakistan has halted all trade with India as well.
Direct trade between the two nations had already declined significantly after India revoked the Most Favoured Nation (MFN) status from Pakistan following the Pulwama attack in 2019 that resulted in the deaths of more than 40 soldiers.
Move expected to hit Pakistan’s economy significantly
The Attari-Wagah border recorded trade totaling Rs 3,886.53 crore for 2023-24. India’s strategic actions are anticipated to significantly affect the economy of small traders and manufacturers in Pakistan.
Although India’s imports from Pakistan have been minimal in recent years, certain goods are sent through ports in Dubai, Singapore, and Colombo to circumvent trade limitations.
According to the data, during 2023-24, India imported goods, primarily agricultural products, valued at USD 3 million from Pakistan.
