In a significant move, India has announced a complete ban on the direct and indirect import of all goods from Pakistan, effective immediately. The decision, made public through a notification from the Directorate General of Foreign Trade (DGFT) on May 2, 2025, is grounded in national security and public policy concerns, following the tragic Pahalgam terror attack on April 22, which claimed the lives of 26 people, mostly tourists.
The new regulation prohibits the transit of all goods originating in or exported from Pakistan, with any potential exceptions requiring prior approval from the Government of India. This decision is part of India’s broader strategy to enhance security measures in the wake of persistent cross-border terrorism. Pakistan’s imports to India have been minimal, comprising just 0.0001% of India’s total imports for FY25. Major imports included fruits, nuts, medicinal plants, and organic chemicals.
Trade between the two countries had already been severely restricted in recent years. Following the 2019 Pulwama terror attack, India had raised import duties on goods from Pakistan, effectively halting most trade. In retaliation, Pakistan suspended trade ties with India, further exacerbating the bilateral trade situation.
The Indian government has also taken additional steps in response to the Pahalgam attack, including the suspension of the Indus Water Treaty, expulsion of Pakistani military attaches, and the closure of the Attari land-transit post. Pakistan has also retaliated with a suspension of all trade to and from India, including transit through third-party countries.
The strained relationship between India and Pakistan, rooted in longstanding issues such as the Kashmir conflict and cross-border terrorism, continues to impact bilateral trade. India’s decision marks another chapter in its ongoing diplomatic actions aimed at safeguarding its national interests.
