India Imposes Blanket Ban on Imports from Pakistan Amid Escalating Tensions Over Pahalgam Terror Attack
In a decisive move following the barbaric terrorist attack in Jammu and Kashmir’s Pahalgam region, the Government of India has imposed a complete ban on all imports—direct and indirect—from Pakistan. The prohibition, which takes effect immediately, was formally notified by the Ministry of Commerce on May 2.
The directive comes amid heightened tensions between the two nuclear-armed neighbors, after investigations into the April 22 terror attack in Baisaran meadow revealed suspected links to Pakistan-based terrorist outfits. The attack claimed the lives of at least 26 civilians, including a Nepalese tourist and a local pony guide operator, triggering widespread outrage and calls for a strong response.
According to the official notification issued by the Commerce Ministry, “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.” The ministry cited national security and public policy considerations as the rationale for the sweeping ban.
The order adds a new provision to the Foreign Trade Policy (FTP) 2023, explicitly barring any form of trade—direct or through third-party countries—that involves goods of Pakistani origin. Any exceptions to this prohibition will require prior approval from the Government of India, the notification stated.
Trade Impact and Diplomatic Fallout
As per official data, trade between India and Pakistan had already seen a sharp decline prior to this move. India’s exports to Pakistan fell by 56.91% year-on-year between April 2024 and February 2025, amounting to $491 million. There were no recorded imports from Pakistan during the same period.
Key exports from India to Pakistan in FY25 included drug formulations, sugar, bulk drugs, residual chemicals, and auto components. The Attari-Wagah border—the only land route for trade between the two countries—had already been closed following the Pahalgam massacre.
The broader economic and geopolitical consequences of the ban are already unfolding. Investor sentiment in Pakistan has taken a significant hit amid the growing tension. The country’s dollar bonds and stock markets are on track for their worst performance since 2023, with losses exceeding 4% in April alone. Equities have declined by 3%, reflecting rising uncertainty and instability. In contrast, India’s financial markets have remained largely resilient.
Global Reactions
The escalating situation has drawn concern from global powers. The United States, along with other key international actors, has urged both India and Pakistan to exercise restraint and engage in dialogue to prevent further deterioration of regional stability.
India’s import ban marks the latest in a series of economic and diplomatic measures aimed at isolating Pakistan over its alleged support for cross-border terrorism. With no clear signs of de-escalation, bilateral relations remain at a critical juncture.
