India announced on Saturday that it has prohibited the import of goods originating from or transiting through Pakistan and has also barred Pakistani vessels from its ports. This action comes as tensions escalate between the two nuclear-armed neighbors following a deadly attack on tourists in Indian-administered Kashmir.
India’s Directorate General of Foreign Trade stated in a notification that the ban would take effect immediately. “This restriction is imposed in the interest of national security and public policy,” the notification read.
The attack, which occurred last week at a mountain tourist destination in the Pahalgam area of the occupied Kashmir valley, resulted in the deaths of at least 26 people.
India has accused Pakistan of involvement in the attack, a claim that Islamabad has denied. Pakistan has stated that it possesses “credible intelligence” indicating India’s intention to launch military action.
Pakistan’s retaliatory measures have included the suspension of all border trade, the closure of its airspace to Indian carriers, and the expulsion of Indian diplomats.
Furthermore, Pakistan has warned that any attempt to obstruct the flow of river water guaranteed under a decades-old treaty would be considered an act of war.
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On Saturday, India also announced that ships flying the Pakistani flag would not be permitted to visit any Indian port, and Indian-flagged ships would be barred from entering any ports in 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,” the Directorate General of Shipping said in a statement.
Trade volume between the two nations has decreased over the past few years.
Pakistan’s Exports Decline by 19% in April
Meanwhile, Pakistan’s exports experienced a sharp decline of over 19% in April 2025, falling to $2.14 billion, according to data from the Pakistan Bureau of Statistics. This represents a significant decrease from March 2025, when exports stood at $2.64 billion.
During the same month, imports saw an increase of 14.52%, surpassing $5.52 billion. Consequently, the trade deficit surged by 55.20% compared to the previous month.
On a year-over-year basis, exports in April 2025 were down by 8.93% compared to April 2024.
Despite the recent monthly downturn, cumulative exports for the first ten months of the current fiscal year (July to April) showed an increase of 6.52%, reaching $26.85 billion. However, imports during the same period also rose by 7.37%, exceeding $48 billion.
This resulted in a trade deficit of $21.35 billion from July to April — an 8.81% increase compared to the corresponding period last year.
In related news, the International Monetary Fund (IMF) has dismissed India’s request to halt financial aid to Pakistan, confirming that the scheduled Executive Board meeting on May 9 will proceed as planned.
The meeting will address Pakistan’s requests for financial assistance, including a significant $2.3 billion aid package.
Mahir Benisi, an IMF representative, clarified that the board meeting would take place on May 9 without any postponement, and Pakistan’s request for assistance would be discussed. When questioned about India’s objections, Benisi emphasized that the IMF could not comment on the concerns of other countries.
“The board meeting will be held as scheduled, and we cannot comment on the concerns of other nations,” he told SAMAA.
