India imposed a complete ban on all direct and indirect imports from Pakistan in early May 2025. This decision is rooted in escalating diplomatic and security tensions following a major terror attack in Pahalgam, Jammu and Kashmir, on April 22, 2025, which resulted in the deaths of 26 civilians, including tourists.
Key Reasons for the Ban
Response to Terror Attack: The immediate trigger for the ban was the deadly attack in Pahalgam, which Indian authorities have linked to terrorist groups based in Pakistan. The Indian government has accused Pakistan of supporting or harbouring these groups, a claim Islamabad denies.
National Security and Public Policy: The official notification from India’s Ministry of Commerce and the Directorate General of Foreign Trade (DGFT) states that the prohibition is “imposed in the interest of national security and public policy” and applies to all goods originating from or transiting through Pakistan, effective immediately.
Escalating Diplomatic Tensions: The move is part of a broader set of retaliatory measures, including suspending the Indus Waters Treaty, closing the Wagah-Attari border trade route, revoking visas for Pakistani nationals, and ordering Pakistani citizens residing in India to leave. Diplomatic ties have been further downgraded, and both countries have reported increased military activity along the Line of Control.
Symbolic and Economic Impact: While the ban is largely symbolic-since India had already imposed 200% tariffs on Pakistani goods after the 2019 Pulwama attack, reducing imports to nearly zero-it sends a strong political message. The ban will cut India’s imports from Pakistan from about $0.5 million annually to zero. The impact on India’s economy is negligible, but it could further strain Pakistan’s struggling export sector, especially for goods like cement, textiles, and agricultural produce.
“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.” – Ministry of Commerce, Government of India.
Any exceptions to this prohibition require prior approval from the Indian government.
Background and Context
Declining Trade: Bilateral trade between India and Pakistan has been minimal in recent years, especially after the 2019 Pulwama attack and subsequent tariff hikes. By 2024–25, Pakistan’s share of India’s imports had dropped to less than 0.0001%.
Broader Measures: The trade ban is one of several steps taken by India to increase pressure on Pakistan in response to cross-border terrorism and to address domestic calls for stronger action
India’s ban on all imports from Pakistan is thus a direct response to a major terror incident, justified on grounds of national security, and is part of a series of escalating diplomatic and economic measures aimed at pressuring Pakistan over its alleged support for cross-border terrorism.
