Pakistani Importers Grapple With Shipping Delays, Cost Surge After India's Cargo Ban
Pakistani exporters have also noted a rise in shipping and insurance costs, though many say the overall impact on exports has so far remained limited
India's ban on ships carrying Pakistani goods from anchoring at its ports has disrupted trade routes, leading to higher freight costs and longer delivery times, according to reports.
The comprehensive ban, effective from 2 May 2025, was imposed following the Pahalgam terror attack. It blocks both the direct and indirect import or transit of goods originating in, or exported from, Pakistan.
As a result, Pakistani importers have reported delays and increased shipping charges, Dawn newspaper reported on Sunday.
'Mother vessels are not coming to Pakistan due to this Indian action, which delays our imports by 30 to 50 days," said Javed Bilwani, President of the Karachi Chamber of Commerce and Industry. He stated that importers are now relying on smaller feeder vessels, which has driven up costs.
Exporters have also noted a rise in shipping and insurance costs, though many say the overall impact on exports has so far remained limited. 'There is no significant impact on exports…, except for a rise in insurance costs. Shipping charges had already gone up even before the escalation," Aamir Aziz, a textile exporter, told the publication.
Pakistan's export sector is heavily dependent on imported raw materials for value addition. With the Pakistani government already restricting imports to preserve foreign currency reserves, any disruption in the supply chain could have far-reaching effects, Dawn added.
Trade ties between India and Pakistan have been tense since the Pulwama terror attack in 2019, after which India raised import duties on Pakistani goods to 200 per cent. Formal trade has largely remained frozen, with bilateral trade shrinking from USD 2.41 billion in 2018 to USD 1.2 billion in 2024. Pakistan's exports to India dropped from USD 547.5 million in 2019 to just USD 480,000 in 2024.
Following the new ban, Indian authorities are also cracking down on efforts to bypass the rules. Last week, the Directorate of Revenue Intelligence (DRI) seized 39 containers at Nhava Sheva Port in Navi Mumbai. The containers, holding over 1,100 metric tonnes of Pakistani-origin goods worth around Rs 9 crore, had been routed through Dubai and the UAE.
The Ministry of Finance confirmed the seizure in an official statement. It said the goods violated India's import regulations, which prohibit both direct and indirect imports from Pakistan. One partner of the importing firm has been arrested in the case.
(With inputs from PTI)
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