Daijiworld Media Network - New Delhi

New Delhi, May 3: In response to escalating tensions with Pakistan following the horrific Pahalgam terror attack, India has imposed a ban on all direct and indirect imports from its neighboring country. The ban, announced by the Ministry of Commerce, is effective immediately, with the notification stating that all goods originating from or exported by Pakistan are prohibited from entering India.

The Ministry’s notification, issued on May 2, clarified that the ban is in place for national security and public policy reasons. It also stated that any exceptions to the ban will require prior approval from the Government of India.

The measure was incorporated into India’s Foreign Trade Policy (FTP) 2023 to formally prohibit any goods originating from Pakistan, whether for direct or indirect import or transit.

Official data shows that India’s exports to Pakistan have already decreased significantly, with a year-on-year drop of 56.91 percent from April 2024 to February 2025, amounting to just $491 million. Notably, no imports from Pakistan were recorded in this period. Key exports to Pakistan in FY25 included pharmaceutical products, sugar, chemicals, and auto parts.

The closure of the Attari-Wagah border, the primary trade route between the two countries, followed the deadly attack in Pahalgam, which resulted in the massacre of 26 civilians, including a Nepalese tourist and a local guide, on April 22. Terror links to Pakistan were found, further exacerbating the already strained relationship.

In the midst of the growing tension, Pakistan’s financial markets have also been hit hard. Investors have faced losses of at least 4 percent in April, with equities falling by 3 percent, marking the country's worst performance in dollar bonds and stocks since 2023. In contrast, India's financial assets have remained largely unaffected.

Global powers, including the United States, have urged both India and Pakistan to show restraint and work towards de-escalating the situation.