“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,” the Directorate General of Foreign Trade said in a Friday notification. “Any exemption or dispensation from this shall be examined and decided on caseto-case basis.” The order on Pakistani vessels was issued by the Directorate General of Shipping, Mumbai, on Saturday “ to ensure safety of Indian assets, cargo and connected infrastructure.”
Dwindling Bilateral Trade
It is “in public interest and for interest of Indian shipping,” according to the order.
Shipping industry representatives say Pakistan flagged ships seldom trade with India.
“The DG Shipping order bans any vessels having Pakistani cargo from docking on Indian ports. This has wider impact since transit routes need to be redrawn for global trade,” an industry watcher told ET.
Pakistan had earlier announced suspension of all trade ties with India including through third countries.
India’s goods imports from Pakistan during April 2024-January 2025 totalled $0.42 million, with plants and seeds, dates, figs and map extracts being the top items, down from $20.21 million in FY23.
The Foreign Trade Policy, 2023, has been amended following the latest order. “This will prohibit import of goods from Pakistan directly or through any other trade route,” read a statement issued by the ministry of commerce and industry on Saturday.
Bilateral trade had been declining after India imposed a 200% duty on Pakistani goods in 2019, following the Pulwama terrorist attack in February, and the then Imran Khan government in Islamabad suspended trade ties after India revoked the special status of Jammu and Kashmir in August of that year.
MOST FAVOURED NATION
While India had granted the ‘most favoured nation’ status to Pakistan in 1996, the neighbouring country never reciprocated.
India-Pakistan trade has contracted to about $1.2 billion in FY24 from $2.5 billion in FY19.
“India doesn’t depend on Pakistani goods, so the economic impact is minimal,” said Ajay Srivastava, founder of Delhi-based think-tank Global Trade Research Initiative.
“However, Pakistan still needs Indian products and may continue accessing them through third countries through recorded and unrecorded routes,” he added.
