Latest news with #Pakistani-flagged
Indian Express
16-05-2025
- Business
- Indian Express
Pakistan goods in transit via third country being banned
THE DIRECTORATE of Revenue Intelligence (DRI), the anti-smuggling body under the Finance Ministry, has begun blocking in-transit goods originating from Pakistan that are being routed through third countries such as the UAE, a government official told The Indian Express. The increased scrutiny by the Customs authorities follows an immediate government ban on the import and transit of all goods originating in, or exported from, Pakistan, according to a May 2 notification by the Ministry of Commerce and Industry in the wake of the Pahalgam terrorist attack. The official said the government is closely monitoring goods arriving from Pakistan, and even consignments that may have been in transit before the May 2 notification now fall under the scope of the ban. Under normal circumstances, an exception is made for goods already at sea. 'Customs are taking action whenever there is suspicion. At a few ports, the DRI has initiated action — for instance, a Pakistani-flagged ship was not allowed to dock. Traders have been reaching out to authorities, claiming trade losses. But a strong notification was necessary to ramp up scrutiny,' the official said. 'With regard to goods arriving from third countries, it is sometimes difficult to identify Pakistani-origin goods based solely on rules-of-origin certificates. However, closer scrutiny through labelling verification often reveals the product's actual origin,' the official said. The official said it is suspected that Pakistani dates and dry fruits have been entering India through the UAE, and the matter has been raised with the Emirati government. 'The UAE has provided production figures, claiming that it also produces dates and dry fruits. But strict notifications serve as a deterrent, even encouraging other countries to avoid bending the norms,' the official said. Prior to the May 2 ban, India had already terminated direct trade with Pakistan, marked by the closure of the Integrated Check Post (ICP) at Attari on April 24, following the Pahalgam terror attack. That move was expected to halt cross-border trade worth Rs 3,886 crore between India and Pakistan. According to estimates by the Global Trade Research Initiative (GTRI), about $10 billion worth of Indian goods reach Pakistan via trans-shipment hub routes. Tensions between the two countries — particularly after the 2019 Pulwama attack — reduced bilateral trade from Rs 4,370.78 crore in 2018-19 to Rs 2,257.55 crore in 2022-23. However, trade rebounded to Rs 3,886.53 crore in 2023-24, the highest in the past five years. Notably, total cargo movement also declined from 49,102 consignments in 2018-19 to just 3,827 in 2022-23, the data shows. In dollar terms, annual India–Pakistan trade has shrunk to about $2 billion over the past five years — a small fraction of the $37 billion trade potential estimated by the World Bank. India's overall goods trade stands at $430 billion, while Pakistan's is approximately $100 billion. The curbing of trade marks a significant shift from the late 1990s, when India took the initiative to boost bilateral trade by extending Most Favoured Nation (MFN) status to Pakistan in 1996, leading to a surge in trading volumes. However, Pakistan never reciprocated by granting the same status to India. In 2019, India revoked Pakistan's MFN status following the Pulwama terrorist attack. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
Yahoo
05-05-2025
- Business
- Yahoo
India-Pakistan Trade Standoff Escalates Amid Kashmir Attack Fallout
India and Pakistan have traded blows to each other's supply chains as tensions between the south Asian countries rise in the wake of a deadly terrorist attack in the historically disputed Kashmir region. On Saturday, India's government announced a ban on imported goods originating from or transiting through Pakistan and a prohibition on Pakistani-flagged ships entering Indian ports. More from Sourcing Journal Tariff Ticker: Congressional Effort to Stop Duties Struck Down, Chamber of Commerce Demands Exemptions Could Changes to Customs Policy Undermine Trump's De Minimis Ban? Inditex Gets Bangladesh's Inaugural Shipment on New Air Cargo Route The move comes days after India first closed the Attari land port situated on its border with Pakistan. This prompted Pakistan to suspend all trade with India. including routes through third countries. Both countries have since closed airspace to the opposite nations' airlines. April 22's militant attack in Pahalgam, a resort town in India-administered Kashmir, resulted in the death of 26 people. India has accused the Pakistani government of supporting the militants. Pakistan has denied the accusations. '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,' said a May 2 notification by India's directorate general of foreign trade, an arm of the commerce ministry. 'This restriction is imposed in the interest of national security and public policy.' The ban also suspends all mail and parcel exchanges into India. The order to turn away Pakistani ships from Indian ports was issued 'to ensure safety of Indian assets, cargo and connected infrastructure, in public interest and for interest of Indian shipping,' according to the country's directorate general of shipping. Any exemption from the order would have to be examined and decided on a case-to-case basis. In retaliation, Pakistan's ministry of maritime affairs prohibited Indian-flagged ships from docking at any of its ports and barred Pakistani ships from accessing Indian ports. Ryan Petersen, CEO and founder of Flexport, said in a post on X Monday morning that ocean shipping is seeing some disruptions due to the rising tensions. 'The Pakistan to India feeder route has gained popularity due to limited direct shipping options from Pakistan, longer transit times to Colombo and persistent congestion,' said Petersen. 'Carriers are now adjusting their services, with some vessels being redirected back to Pakistan to unload cargo, while others are rerouting to Colombo.' Despite the ban, Petersen said there are no confirmed restrictions on Pakistan cargo yet, 'with a port call in India remaining on board for its final destination. The trade relationship between the apparel producers and exporters has deteriorated in recent years. Even before the cutoff, any benefits have been very one-sided in favor of India. 'The move is largely symbolic,' said Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), in a research note. 'India doesn't depend on Pakistani goods, so the economic impact is minimal. On the other hand, Pakistan still needs Indian products and may continue accessing them through third countries using recoded or unrecorded routes.' The sharp decline in bilateral trade between India and Pakistan came after a previous attack—a suicide bombing in 2019 that killed 40 Indian police officers. In response to the attack, India levied a 200 percent tariff on all Pakistani goods and withdrew the country's 'most favored nation' status. In 2019, India's exports to Pakistan had once peaked at $2.1 billion, while imports stood at $495 million. In between April 2024 and February 2025, the export total decreased substantially to just $491 million. Imports have cratered to roughly $420,000, and are niche items like figs, Himalayan pink salt and select herbs such as basil and rosemary, according to Srivastava. India's supply chain squabbles extend beyond its neighbor to the west, with the country engaging in another tit-for tat with Bangladesh over the past month. Bangladesh first restricted land imports of cotton yarn from India after a request from local textile mills that the raw materials should only be allowed via seaports. India then revoked Bangladesh's access to its transshipment hubs, which the latter's exporters had previously used to ship goods out of the country via Indian customs stations, ports and airports. Indian exporters had urged the government to end the service for Bangladeshi businesses, citing the backlogs seen at airports and ports due to the cargo from both countries. Relations between both countries have soured in the wake of the ousting of former Bangladesh Prime Minister Sheikh Hasina, who is currently in exile in India.
Hans India
05-05-2025
- Politics
- Hans India
India cuts water flow through Baglihar dam
New Delhi: In a significant move, India has stopped the flow of water through the Baglihar Dam on the Chenab River leading to Pakistan and is planning similar measures at the Kishanganga Dam on the Jhelum River, according to reports. This move comes after India suspended the decades-old Indus Waters Treaty with Pakistan in the wake of the barbaric terror attack in Jammu and Kashmir's Pahalgam on April 22, where 26 tourists were gunned down by terrorists at the Baisaran Meadows. The Indus Waters Treaty has governed the use of the Indus River and its tributaries between India and Pakistan since 1960. The suspension of the treaty was met with anger from Pakistan, which sees the move as an 'act of war". A source familiar with the matter told news agency PTI that both hydroelectric dams, Baglihar in Ramban and Kishanganga in north Kashmir, offer India the ability to regulate the timing of water releases. A senior official told The Indian Express that the gates of the sluice spillways on the Baglihar dam had been lowered to restrict water flow to Pakistan's Punjab province as a 'short-term punitive action". The step, even though for a short while, is aimed at showing Pakistan that India is ready to take coercive actions to punish them on all fronts, the official added. The Baglihar Dam has been a longstanding point of contention between the two neighbours, with Pakistan having sought World Bank arbitration in the past. On the other hand, the Kishanganga Dam has faced legal and diplomatic scrutiny due to its impact on the Neelum River. Tensions between India and Pakistan continue to escalate as the Pakistani forces violated ceasefire along the Line of Control (LoC) for ten days in a row. Pakistan also tested its surface-to-surface ballistic missile on Saturday, which India called a 'reckless act of provocation and a dangerous escalation". In its second set of punitive measures against Pakistan, India banned all imports from Pakistan, banned all Pakistani-flagged ships from docking at Indian ports and closed all postal services. India has also closed its airspace for Pakistani airlines in a tit-for-tat move to hurt Pakistan's economy. Prime Minister Narendra Modi had earlier asserted that armed forces have 'complete operational freedom" to decide on the mode, targets and timing of India's response to the Pahalgam terror attack.
Yahoo
05-05-2025
- Business
- Yahoo
India bans imports from Pakistan amid tension over tourist killings
By Rupam Jain NEW DELHI (Reuters) -India said on Saturday it had banned the import of goods coming from or transiting via Pakistan and barred Pakistani ships as tensions rise between the nuclear-armed neighbours in the wake of a deadly attack on tourists in the disputed Kashmir region. India's Directorate General of Foreign Trade said in a notification that the ban would take effect immediately. "This restriction is imposed in the interest of national security and public policy," it said. Suspected militants killed at least 26 people in last week's attack on a mountain tourist destination in the Pahalgam area of the Kashmir valley. The Muslim-majority Himalayan region is claimed by both India and Pakistan, and has been the focus of several wars, an insurgency and diplomatic standoffs. India has accused Pakistan of involvement in the attack, which Islamabad denies. Pakistan has said it has "credible intelligence" that India intends to launch military action. Pakistan's retaliatory measures have included halting all border trade, closing its airspace to Indian carriers and expelling Indian diplomats. It has also warned that any attempt to prevent the flow of river water promised under a decades-old treaty would be considered an act of war. On Saturday, India said Pakistani-flagged ships would not be allowed to visit any Indian port, and Indian flagged-ships would not visit any ports in Pakistan. "This order is issued to ensure safety of Indian assets, cargo and connected infrastructure, in public interest and for interest of Indian shipping," the Directorate General of Shipping said in an statement. Trade between the two nations has dwindled over the last few years. Sign in to access your portfolio
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First Post
05-05-2025
- Politics
- First Post
India has given ‘very long rope' to Pakistan, should use ‘electric chair for execution': Former Afghan VP
Terrorists struck Baisaran, a prime tourist location, in Pahalgam in south Kashmir on April 22, killing at least 26 people, mostly tourists, and injuring several others read more The former Vice President of Afghanistan, Amrullah Saleh, has responded to the terrorist incident in Pahalgam. Saleh said on X that 'India has placed a very long rope around its enemy's neck instead of using an electric chair for execution.' It seems ... India has placed a very long rope around its enemy's neck instead of using an electric chair for execution. — Amrullah Saleh (@AmrullahSaleh2) May 4, 2025 STORY CONTINUES BELOW THIS AD Terrorists struck Baisaran, a prime tourist location, in Pahalgam in south Kashmir on April 22, killing at least 26 people, mostly tourists, and injuring several others. Since the assault, there has been a lot of tension between India and Pakistan, with India promising to take tough measures against terrorism. Prime Minister Narendra Modi has spoken out strongly against terrorism. His assertion on strongly dealing with terrorism came even as India announced fresh punitive measures against Pakistan including complete ban on imports from Pakistan, suspension of all postal services from that country and banning entry of Pakistani-flagged ships at Indian ports. At the same time, Pakistan remains on high alert.
