The Indian government has announced an immediate ban on the import of all goods originating from or exported by Pakistan. The directive, issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, came into effect on May 2nd, 2025.
The notification explicitly prohibits both direct and indirect import, as well as the transit of all goods originating in or exported from Pakistan, regardless of whether those goods were previously freely importable or otherwise permitted. This means that no goods from Pakistan will be allowed into India through any trade route.
A new paragraph, designated as Para 2.20A, has been inserted into the Foreign Trade Policy (FTP) 2023 to formalize this prohibition. The inserted clause states:
“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. This restriction is imposed in the interest of national security and public policy.”
The government’s decision, citing “national security and public policy,” marks a complete halt to the already limited trade between the two neighboring nations.
Prior to this blanket ban, trade between India and Pakistan had been subject to various restrictions and political considerations. This new directive effectively closes all avenues for the import of Pakistani goods into India.
The implications of this trade suspension on various sectors and the broader economic relationship between the two countries are likely to be significant and will be closely watched by businesses and analysts alike. The duration of this ban remains indefinite, pending further orders from the Indian government.