In the wake of Pahalgam terror attack, which claimed the lives of 26 people, India has immediately prohibited the direct or indirect import, export, and transit of goods from Pakistan, effectively stopping all bilateral trade between the two countries, according to the notification from the Ministry of Commerce and Industry.
“In exercise of power coffered by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, read with Paragraph 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2023, as amended from time to time, the Central government hereby inserts a new Para 2.20A in the Foreign Trade Policy, 2023 as follows with immediate effect,” read the Gazette notification.
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“Para 2.20A: Prohibition on Import from Pakistan. 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. This restriction is imposed in the interest of national security and public policy. Any exception to this prohibition shall require prior approval of the Government of India,” further read the Commerce and Industry Ministry’s notification.
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Which Goods Are Affected, And What Is The Total Size Of India-Pak Trade?
The India-Pakistan trade has seen a significant decline in recent years. Imports from Pakistan declined sharply to just $420,000 between April 2024 and January 2025, which is much lower from $2.86 million registered during the same period the previous year.
During the April 2024 and January 2025 period, India exported goods worth $447.7 million to Pakistan.
According to the government data, main items of export from India to Pakistan are cotton, organic chemicals, food products including prepared animal fodder, edible vegetables, plastic articles, man-made filament, coffee, tea, spices, dyes, oil seeds, dairy products, pharmaceuticals etc.
Meanwhile, main items of import by India from Pakistan are copper and copper articles, edible fruits and nuts, cotton, salt, sulphur and earths and stones, organic chemicals, mineral fuels, plastic products, wool, glassware, raw hides & skin etc.
What Else?
Following the Pahalgam terror attack, the Indian government announced several diplomatic measures, such as closing the Integrated Check Post (ICP) at Attari, suspending the SAARC Visa Exemption Scheme (SVES) for Pakistani nationals, giving them 40 hours to return to their country, and reducing the number of officers in the High Commissions on both sides. Moreover, India also suspended the Indus Waters Treaty signed in 1960 in the wake of the Pahalgam attack.
Pakistan responded to India's measures by pausing trade with India, closing its airspace to India-bound aircraft, and expelling Indian diplomats. Moreover, Pakistan has warned that any attempt by India to disrupt the water flow agreed upon in the treaty would be considered as an "act of war".
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