India cracks the whip again, bans all Pak imports, mails and parcels, bars port access to ships

India continued its offensive against Pakistan on Saturday and announced a slew of tough decisions that will severely impact the economy of the neighbouring country over its continued support to cross-border terrorism following the Pahalgam terror attack.

India imposed an immediate ban on all direct and indirect import of goods from Pakistan with immediate effect “in the interest of national security and public policy”. The decision was announced via a notification of the directorate general of foreign trade (DGFT) and has been incorporated into the Foreign Trade Policy (FTP) 2023.

The new FTP provision says, “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.”
Any exception will require explicit approval from the government, it added.

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In another decision with economic consequences, New Delhi has barred all Pakistani-flag-bearing ships from entering any Indian ports to “ensure the safety of Indian assets, cargo, and connected infrastructure”.

“A ship bearing the flag of Pakistan shall not be allowed to visit any Indian port. An Indian flag ship shall not visit any Ports of Pakistan. This order is issued to ensure the safety of Indian assets, cargo, and connected infrastructure in the public interest and for the interest of Indian shipping. Any exemption or dispensation from this order shall be examined and decided on a case-by-case basis,” it said.

Actions to have severe impact on Pakistan economy

Usually India has a trade surplus with Pakistan. Between April and January 2024–25, imports from Pakistan included fruits and nuts ($0.08 million), specific oilseeds and medicinal plants (USD 0.26 million), and organic chemicals. India’s exports to Pakistan in April-January 2024-25 stood at USD 447.65 million, said a report of the news agency PTI.

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In 2023–24, exports totalled USD 1.18 billion, while imports stood at USD 2.88 million. The Attari-Wagah border saw trade worth Rs 3,886.53 crore in 2023-24.
Suspension of exports from India will create a shortage of goods in Pakistan, which will push up prices, while the halt of imports will also hit Islamabad and have a severe economic impact on small traders and manufacturers.

Currently, India’s forex reserves exceed $688 billion, while Pakistan has just over $15 billion.

India suspends exchange of all inbound mail and parcels from Pakistan

The Union government on Saturday suspended the exchange of all categories of mail and parcels from Pakistan through air and surface routes.
“The Government of India has decided to suspend the exchange of all categories of inbound mail and parcels from Pakistan through air and surface routes,” a public notice issued by the department of posts said.

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At least 26 civilians, including a Nepalese tourist and a local pony operator, were brutally killed by terrorists in the Baisaran meadow in Jammu and Kashmir on April 22.
India has repeatedly accused Pakistan of harbouring terrorists and providing them a safe haven across the border.