In a strong response to the recent terror attack in Pahalgam, India has decided to stop all imports—both direct and indirect—from Pakistan and has also banned Pakistani ships from entering Indian ports. While India didn’t import much directly from Pakistan, some goods were still reaching India through other countries, and this move aims to stop that, too.

A recently added clause in the Foreign Trade Policy (FTP) states that "direct or indirect import or transit of all goods originating in or exported from Pakistan with immediate effect until further orders" is prohibited, according to a notification from the Commerce Ministry. The notification stated that the rule was put in place to protect national security and align with public policy. Additionally, another order from the Directorate General of Shipping mentioned that ships flying the flag of Pakistan would no longer be permitted to dock at 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.

Trade between India and Pakistan has been heavily affected due to rising tensions between the two countries. India has decided to shut down trade through the Attari-Wagah border, which is the only land route for cross-border trade. In response, Pakistan has also halted all trade with India. The decline in direct trade between the two countries had already started after India revoked Pakistan's Most Favoured Nation (MFN) status following the Pulwama attack in 2019, which resulted in the deaths of over 40 soldiers. In 2023-24, trade through the Attari-Wagah border reached ₹3,886.53 crore. India’s recent strategic actions are likely to seriously affect small traders and manufacturers in Pakistan.

India has also suspended all mail and parcel exchanges with Pakistan through both air and surface routes. This move was ordered by the Department of Posts, which falls under the Ministry of Communications. This suspension came shortly after a total ban was placed on both direct and indirect imports from Pakistan, as well as a ban on Pakistan-flagged ships docking in Indian ports. Additionally, Indian ships are now prohibited from travelling to Pakistani ports.

Although India has imported very little from Pakistan in recent years, some goods still reach India indirectly through ports in Dubai, Singapore and Colombo, bypassing trade restrictions. Data shows that India imported mainly agricultural goods worth USD 3 million from Pakistan in 2023-24. However, Pakistan depends heavily on India for pharmaceutical products. With India now stopping all trade, Pakistan is urgently searching for other ways to meet its medicine needs.