India has announced an immediate ban on both direct and indirect imports of all goods from Pakistan and has suspended port access, according to a notification issued by the Ministry of Commerce.

A provision in this regard has been added to the Foreign Trade Policy (FTP) 2023, stating 'to prohibit direct or indirect import or transit of all goods originating in or exported from Pakistan with immediate effect until further orders,' according to the notification dated May 2.

The Directorate General of Foreign Trade (DGFT) stated in the notification that the restriction has been imposed in the interest of national security and public policy.

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Any exemption from this ban will require prior approval from the Government of India.

A provision in this regard has been added in Foreign Trade Policy (FTP) 2023 "To prohibit direct or indirect import or transit of all goods originating in or exported from Pakistan with immediate effect until further orders", the Directorate General of Foreign Trade (DGFT) said in a notification dated May 2.

The decision follows a terror attack in Pahalgam, in which 26 people, mostly tourists, were killed on April 22.

The decision will bring a complete halt to all incoming shipments of goods from Pakistan to India. Between April and January of the 2024–25 fiscal year, India exported goods worth USD 447.65 million to Pakistan, while imports from Pakistan were minimal, totaling just USD 0.42 million.

The order stated that this restriction has been imposed in the interest of national security and public policy. Any exceptions to the ban will require prior approval from the Government of India.

Inserting the provision under the heading "Prohibition on Import from Pakistan" in the FTP, it said, "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".

India has decided to completely stop all inbound shipments from Pakistan, citing national security and public policy concerns. Any exception to this ban will need government approval.

The move comes after a terror attack in Pahalgam on April 22 that killed 26 people. In response, India closed the Attari land-transit post, expelled Pakistani military attaches, and suspended the Indus Water Treaty of 1960. Pakistan also suspended all trade with India, including transit trade via third countries.

Trade between the two nations had already declined sharply after the Pulwama attack in 2019. India had raised import duties on Pakistani goods to 200%, effectively halting trade. It also withdrew Pakistan’s Most Favoured Nation (MFN) status under WTO rules, which Pakistan never reciprocated despite a 1996 commitment.

From April to January in FY 2024-25, India’s exports to Pakistan stood at USD 447.65 million, while imports were only USD 0.42 million. Imports mainly included fruits, nuts, oil seeds, and medicinal plants. Exports were led by organic chemicals (USD 129.55 million), pharmaceuticals (USD 110.06 million), and sugar (USD 85.16 million). Other items included auto parts, petroleum products, fertilisers, and plastics.

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Trade figures in earlier years show a sharp fall. In 2023-24, India exported USD 1.18 billion worth of goods to Pakistan and imported just USD 2.88 million. In 2022-23 and 2021-22, exports stood at USD 627.1 million and USD 513.82 million, respectively.

India and Pakistan’s trade relationship has remained strained for years due to ongoing political tensions, especially around Kashmir and terrorism concerns.

(With PTI Inputs)