India has imposed a blanket ban on the import and transit of all goods originating from or passing through Pakistan, citing national security concerns. The move follows the April 22 terror attack in Pahalgam, Jammu and Kashmir, that killed 26 civilians, including tourists. The Directorate General of Foreign Trade (DGFT) issued a notification on May 2, incorporating a provision into the Foreign Trade Policy 2023 to prohibit any direct or indirect imports from Pakistan with immediate effect, unless an exception is granted by the government.
This action is part of a wider set of retaliatory measures by India to cut diplomatic and economic ties with Pakistan. Other steps include suspending the Indus Waters Treaty, canceling visas of Pakistani nationals in India, expelling Pakistani diplomats, and imposing airspace restrictions. Pakistan has responded by ceasing all trade with India, closing its airspace to Indian aircraft, and expelling Indian envoys. It also warned that any interference with the water treaty would be considered an act of war.
Trade between the two nations has already plummeted, with Indian imports from Pakistan dropping to $420,000 and exports down to $447.7 million between April 2024 and January 2025. The ban is expected to further isolate Pakistan economically.