Pahalgam: India now strikes at Pakistani trade, bans all imports from the country

In yet another strategic move following the Pahalgam terror attack , India has announced that it has banned all direct or indirect imports of goods from Pakistan. Tensions between the two nations skyrocketed after terrorists infiltrated a tourist spot in Pahalgam, Kashmir, killing 26 people and sending shockwaves across India.

On Saturday, the Commerce Ministry announced the import ban and said that it would be effective immediately. It is pertinent to note that the direct imports from Pakistan have been minuscule, and some of the goods that enter the country from Pakistan arrive through indirect channels via third countries.

In the Commerce Ministry notification, there is a newly added provision in the Foreign Trade Policy (FTP) that mentions the prohibition of “direct or indirect import or transit of all goods originating in or exported from Pakistan with immediate effect until further orders”.

The reason behind the move

The notification from the ministry said that the measures are being taken in the interest of national security and public policy. Apart from this, another order by the Directorate General of Shipping said any ship bearing the flag of Pakistan wouldn’t be allowed to visit 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. It is important to note that for the longest time, trade between India and Pakistan has suffered significantly due to the animosities between the two nations.

Shortly after the Pahalgam terror attack, New Delhi announced the closure of trade through the Attari-Wagah border - the only land border crossing between the two countries. In a tit-for-tat move, Pakistan has also suspended all trade with India.

Before this, direct trade between the two nations came down sharply after India withdrew Pakistan from the Most Favoured Nation (MFN) status, shortly after the Pulwama attack in 2019.

According to India Today, the Attari-Wagah border saw trade worth Rs 3,886.53 crore in 2023-24. India is considering undertaking several strategic moves that are expected to have a severe impact on small traders and manufacturers in Pakistan. As per data, in 2023-24, India imported goods, mainly agricultural commodities, worth USD 3 million from Pakistan. Meanwhile, Pakistan depends on India for pharmaceutical supplies. Hence, it will be interesting to see how Pakistan would react to the move.