India has imposed a ban on the direct and indirect import, as well as the transit, of all goods originating from or exported by Pakistan.

In a notification issued on Saturday, May 3, the country’s Ministry of Commerce and Industry stated that the move was taken in the interest of national security and public policy.

The ban would prohibit import of goods from Pakistan directly or through any other trade routes, the notification added.

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According to NDTV, an Indian media outlet, key imports from Pakistan included pharmaceuticals, fruits, and oilseeds. However, bilateral trade between the two countries has sharply declined since 2019, following the Pulwama terror attack.

In response to the Pulwama incident, India imposed a 200% customs duty on Pakistani products and withdrew Pakistan's ‘Most Favoured Nation’ trade status.

“From $2.4 billion in 2017-18 and $2.3 billion in 2016-17, bilateral trade nosedived to just $647 million in 2023-24. In 2024-25 (till January), India's exports to Pakistan stood at $447.65 million while the imports were just $0.42 million. Reports suggest this was less than 0.0001% of India's total imports in 2024-25,” said the NDTV report . 

Fiscal year in India begins on April 1. 

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The latest trade ban follows a deadly terrorist attack in Pahalgam on April 22, which claimed the lives of 26 tourists, including one Nepali national. India has accused Pakistan of involvement in the attack, a charge Islamabad has denied.

In the wake of the attack, India has undertaken a series of retaliatory measures: shutting down the Integrated Check Post (ICP) at Attari, suspending the SAARC Visa Exemption Scheme (SVES) for Pakistani nationals (with a 40-hour deadline to exit), reducing diplomatic staff in both High Commissions, and suspending the long-standing Indus Waters Treaty signed in 1960.

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Pakistan has responded with reciprocal measures, including airspace closures and other tit-for-tat actions.

Global powers and the United Nations have urged both nuclear-armed nations to exercise restraint and take steps to de-escalate rising tensions.