By Soumya Ranjan 
The action follows India’s announcement that the Pahalgam attack had crippled bilateral trade by closing the Attari-Wagah land border.
A short
* India prohibits importing goods from Pakistan, either directly or indirectly.
* anticipated to have an impact on Pakistan’s already precarious economic expansion
* follows the terror attack in Pahalgam that claimed 26 lives.
India has taken harsh measures in response to the Pahalgam terror attack, prohibiting both the direct and indirect importation of goods from Pakistan and the entry of Pakistani vessels into Indian ports. Although there have been very few direct imports from Pakistan, some goods have been coming into the nation through third-party countries or indirect channels.
A recently added clause in the Foreign Trade Policy (FTP) states that “direct or indirect import or transit of all goods originating in or exported from Pakistan with immediate effect until further orders” is prohibited, according to a notification from the Commerce Ministry.
According to the notification, the clause was put in place for public policy and national security reasons.
Any ship flying the flag of Pakistan will not be permitted to enter any Indian port, according to another directive from the Directorate General of Shipping.
In the public interest and for the benefit of Indian shipping, the order stated, “This order is issued to ensure the safety of Indian assets, cargo, and connected infrastructure.”
TRADE ENDS IN HALT
With New Delhi already announcing the closure of trade through the Attari-Wagah border, the only land border crossing between the two countries, trade has become the first casualty of the escalating tensions between India and Pakistan.
In retaliation, Pakistan has also halted all of its trade with India.
Following India’s removal of Pakistan’s Most Favoured Nation (MFN) status following the Pulwama attack in 2019, which claimed the lives of over 40 soldiers, direct trade between the two nations had already drastically decreased.
In 2023–2024, trade along the Attari–Wagah border totaled Rs 3,886.53 crore. Pakistani manufacturers and small traders are predicted to suffer economically as a result of India’s strategic actions.
Some goods are transported through ports in Dubai, Singapore, and Colombo to get around trade restrictions, even though India’s imports from Pakistan have been extremely small in recent years.
According to data, India imported USD 3 million worth of goods from Pakistan in 2023–2024, mostly agricultural commodities.
Nonetheless, India provides Pakistan with pharmaceuticals. A shaken Pakistan has begun seriously considering other options to meet its pharmaceutical needs since India stopped all trade.
Also Read: The ‘All Eyes On Pahalgam’ post by Muhammad Shami denounces the terrorist attack.