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Amid escalating tensions between India and Pakistan following the deadly Pahalgam terror attack, the Indian government has imposed a comprehensive ban on all imports from Pakistan.
A notification issued by India’s Commerce Ministry on May 2 prohibits both direct and indirect imports, effective immediately, until further orders.
The decision follows the April 22 attack in Jammu and Kashmir’s Baisaran meadow, where terrorists killed at least 26 civilians, including a Nepalese tourist and a local guide.
This horrific incident has further strained already fragile relations between the two countries.
The Ban On Imports: A Step In National Security
The government’s notification emphasised that the import ban is being enforced in the interest of national security and public policy.
It also specified that any exceptions to this ban would require prior approval from the Government of India.
India has updated its Foreign Trade Policy (FTP) for 2023 to explicitly prohibit the direct or indirect transit of goods originating from Pakistan.
India’s exports to Pakistan had already been on the decline, with official data showing a 56.91% drop in trade between April 2024 and February 2025.
During this period, India’s exports to Pakistan amounted to just $491 million, a stark contrast to previous years.
The main items India exported included drug formulations, sugar, chemicals, and auto components.
Impact On Trade & Bilateral Relations
The closure of the Attari-Wagah border, a key trade route, had already disrupted trade flows between the two nations.
Now, with the full ban on imports, Pakistan faces a significant economic setback, further isolating it from Indian markets.
Pakistan’s reliance on Indian imports, particularly for goods like bulk drugs and chemicals, now faces substantial challenges.
Pakistan’s Economic Struggles Amid Rising Tensions
The ongoing tensions with India have already shaken investor confidence in Pakistan, contributing to its worst economic performance in recent years.
The country’s stocks and dollar bonds have plummeted, with investors losing at least four per cent in April alone.
The overall equity market has seen a three per cent decline.
In contrast, India’s economy and assets have largely remained stable despite the strained relations.
Global Reactions
International powers, including the United States, have urged both India and Pakistan to show restraint and de-escalate tensions.
However, the situation remains fragile, with both nations grappling with security concerns and diplomatic challenges.
India’s import ban underscores its determination to safeguard national security and reflects its broader strategy to address terrorism-related threats originating from Pakistan.
As the situation continues to unfold, it remains to be seen how this measure will impact long-term relations between the two countries.
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