New Delhi: India has imposed a complete ban on imports of all goods from Pakistan with immediate effect on the grounds of national security and public policy, following last month’s terror attack in Pahalgam, according to a government order.
Though the 200 per cent import duty imposed on Pakistani goods in 2019 after the Pulwama terror attack had effectively halted direct imports, the latest decision also prohibits the entry of Pakistani goods routed through third countries.
India’s exports to Pakistan in April-January 2024-25 stood at USD 447.65 million, while imports were meagre USD 0.42 million. These imports were limited to niche items like figs (USD 78,000), Basil and Rosemary herbs (USD 18,856), certain chemicals, and Himalayan pink salt. The imports were USD 2.88 million in 2023-24.
A provision 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.
It added this restriction is imposed in the interest of “national security and public policy”. Any exception to this prohibition will require approval of Government of India, the order said.
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”.
The decision follows a terror attack in Pahalgam on April 22, in which 26 people, mostly tourists, were killed.
“This will prohibit import of goods from Pakistan directly or through any other trade route,” the commerce ministry said.
Following the terror attack last month, India took a series of measures including immediate shutting down of the Attari land-transit post, used for movement of certain kinds of goods. Besides, India has announced expulsion of Pakistani military attaches, and suspension of the Indus Water Treaty of 1960.
In retaliation, Pakistan also announced suspension of all trade with India, including to and from any third country through Pakistan.
Bilateral trade between the two countries nosedived after the Pulwama terror attack.
Besides imposing 200 per cent duty, India had also withdrawn Pakistan’s ‘Most Favoured Nation’ trade status.
The bilateral trade dipped to USD 647.2 million in 2023-24 from USD 2.41 billion in 2017-18 and USD 2.27 billion in 2016-17.
Both countries have a long history of strained relations, primarily due to the Kashmir issue as well as the cross-border terrorism emanating from Pakistan.
Commenting on India’s decision, think tank GTRI said that India does not depend on Pakistani goods, so the economic impact is minimal.
“However, Pakistan still needs Indian products and may continue accessing them through third countries through recorded and unrecorded routes. India’s already minuscule imports from Pakistan will now drop to zero. No one in India will miss anything except perhaps Himalayan pink salt (sendha Namak), extracted from salt deposits of Pakistan,” GTRI Founder Ajay Srivastava said.
