In a decisive move to cut off all trade ties with Pakistan, India has extended its import ban to include goods routed through third countries such as the UAE, Singapore, Indonesia, and Sri Lanka. This measure, issued by the Directorate General of Foreign Trade (DGFT) on May 2, follows Pakistan-sponsored terror attacks in Pahalgam that killed 26 people on April 22.
Customs and enforcement agencies have been instructed to stay on high alert amid intelligence that over $500 million worth of Pakistani goods — including textiles, rock salt, leather, and fruits — are still entering India after being relabelled in transit nations.
Although official direct imports from Pakistan had already fallen drastically — from $495 million in FY19 to a mere $0.42 million in FY25 (April-January) — backdoor trade persists due to product quality and cost competitiveness. The DGFT order now prohibits any imports of Pakistani origin, directly or indirectly, unless cleared with prior government approval.
This ban builds upon earlier punitive trade actions, including the 2019 withdrawal of Pakistan’s “Most Favoured Nation” status and the imposition of a 200% customs duty after the Pulwama terror attack.
India’s move is aimed at crippling Pakistan’s already fragile economy and reinforcing the policy that “terror and trade cannot go together.” Authorities emphasize this prohibition is crucial for national security and public policy.
Read also: