Trade, ports, mail: India shuts out Pakistan entirely after Pahalgam attack

Hindustan Times

04-05-2025

India took fresh steps on Saturday to completely block out Pakistan as it unveiled punitive economic measures against the neighbouring country, banning the import of all goods originating there, prohibiting Pakistan-flagged vessels calling at Indian ports, and stopping the exchange of mail and parcels by land and air routes.
The moves — by three different divisions: Directorate General of Foreign Trade (DGFT), Directorate General of Shipping (DGS) and Department of Posts — are the latest in New Delhi's manoeuvres to retaliate against Pakistan over its continued support to terrorism, following the April 22 Pahalgam terror attack.
The government cited national security and national interest as reasons for the measures, which came against the backdrop of India also undercutting Pakistan at international fora as part of the efforts to build a global consensus against Islamabad.
'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,' said a May 2 notification by DGFT, an arm of the commerce ministry.
In a separate order issued on Saturday, DGS, which is a part of the ministry of ports, shipping and waterways, said all ships 'bearing the flag of Pakistan shall not be allowed to visit any Indian Port'. It also prohibited Indian-flagged vessels from visiting any Pakistani port.
'This order is issued to ensure safety of Indian assets, cargo and connected infrastructure, in public interest and for interest of Indian shipping. Any exemption or dispensation from this order shall be examined and decided on case-to-case basis,' it said, adding the order would be enforced with immediate effect.
Union minister for communications and development of north eastern region, Jyotiraditya Scindia, shared another notification issued by the department of posts, which comes under the ministry of communications, saying the government had decided to 'suspend exchange of all categories of inbound mail and parcels from Pakistan through air and surface routes'.
New Delhi has already announced a raft of steps against Pakistan, including the suspension of the Indus Waters Treaty, the closure of its airspace to Pakistani aircraft, the expulsion of most Pakistani nationals, and the closure of the only operational land border crossing at Attari. It has also asked the International Monetary Fund (IMF) to review loans to the neighbouring country, people aware of the matter said. Pakistan has unveiled several counter-measures such as closing its airspace to Indian airliners and suspending all trade, as it offered to participate in an independent investigation of the attack — a proposition that New Delhi sees as meaningless given its past track-record of inaction in terror probes.
Experts said the order banning the import and transit of Pakistani-origin goods carried a strong message even though Indian imports from Pakistan were negligible and were part of efforts to
'Our imports from Pakistan are nearly zero, whereas Pakistan imported Indian merchandise worth about $500 million in the first nine months of 2024-25,' an official said requesting anonymity.
According to government data, Pakistan imported goods worth almost $448 million from India during April-January of FY25. These imports included medicines, sugar, chemicals, auto components and petroleum products.
'India doesn't depend on Pakistani goods, so the economic impact is minimal. However, Pakistan still needs Indian products and may continue accessing them through third countries through recorded and unrecorded routes,' said Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI).
Srivastava said India had imposed 200% tariffs on Pakistani goods after the 2019 Pulwama suicide bombing, reducing imports to just $420,000 between April 2024 and January 2025. These imports were limited to niche items such as figs, basil, rosemary and Himalayan pink salt.
The measures initiated by India were unlikely to impact informal Pakistani imports of Indian goods such as medicines, chemicals, sugar and food items through third countries such as the United Arab Emirates, Singapore and Sri Lanka, which GTRI has estimated at almost $10 billion a year.
India used to import mineral oil, copper, fruits and nuts, salt, sulphur, plastering materials, cotton, raw hides and skins from Pakistan. It exported cotton, chemicals, pharmaceuticals, sugar, prepared animal fodder, vegetables, plastic articles and dairy products.
Last week, a group of heavily armed terrorists emerged from the woods and targeted tourists on the Baisaran grassland near Pahalgam. Twenty-six people, 25 of them tourists and 24, Hindu were killed in the attack that was reminiscent of the heyday of terrorism in the 1990s and 2000s and the worst to rock the country since the 2008 Mumbai terror attacks.
Pakistan-based terror group Lashkar-e-Taiba's proxy, The Resistance Front (TRF), initially claimed responsibility for the attack. New Delhi has since identified three Pakistani terrorists and tracked their digital footprints to underline Islamabad's role in the attack.