India has imposed an immediate ban on the import of all goods originating from or transiting through Pakistan, in a significant escalation of punitive measures following last month’s terror attack in Pahalgam that left over two dozen dead.
The Directorate General of Foreign Trade, in a notification issued on 2 May, stated, “This restriction is imposed in the interest of national security and public policy,” adding that any exceptions would require prior approval from the government.
The move comes as tensions continue to rise between the two nuclear-armed neighbours. On 22 April, a deadly assault in the Pahalgam area of Indian-administered Kashmir claimed the lives of at least 27 people, most of them tourists. The Indian government has directly blamed Pakistan for the attack, prompting a series of retaliatory steps including the suspension of the Indus Waters Treaty, cancellation of Pakistani visas, expulsion of diplomats, and a ban on Pakistani aircraft from Indian airspace.
Pakistan, denying any involvement in the attack, has warned of retaliation should India engage in military action. In turn, Islamabad has ceased all trade with India, closed its own airspace, expelled Indian diplomats, and declared that any disruption to the water-sharing pact would be deemed “an act of war”.
The Directorate’s ban now adds another layer to the deteriorating relations. Analysts view the move as largely symbolic, given that bilateral trade has already fallen dramatically in recent years. According to India’s Ministry of Commerce, imports from Pakistan dropped to a mere $420,000 between April 2024 and January 2025 — down sharply from $2.86 million during the same period the previous year.
Indian exports to Pakistan also witnessed a significant slump, falling from $1.1 billion to $447.7 million in the same window, reflecting the broader geopolitical freeze.
The Indus Waters Treaty, brokered by the World Bank in 1960, has been considered one of the few sustained examples of cooperation between the two rivals. Its suspension marks a particularly severe shift in India's policy towards its western neighbour.
While Pakistan has attempted to rally international support against India’s recent actions, New Delhi has maintained that its steps are justified and taken in the interest of national sovereignty and the safety of its citizens.
India and Pakistan have a fraught history, having fought three wars since partition in 1947. Despite intermittent dialogue, hostilities often flare up following cross-border violence. The Pahalgam attack, being among the deadliest in recent years, has once again brought relations to a boiling point.
With both sides trading diplomatic and economic blows, the prospect of re-engagement appears bleak. Observers warn that further provocation could lead to a broader crisis if cooler heads do not prevail.
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