The Government of India, under the Ministry of Commerce and Industry, has announced an immediate prohibition on the import and transit of all goods originating in or exported from Pakistan. This notification issued by the Directorate General of Foreign Trade (DGFT) on May 2, 2025 was published on May 26, 2025. It inserts a new Para 2.20A into the Foreign Trade Policy (FTP) 2023.
This new clause imposes a blanket ban on direct or indirect import or transit of all goods from Pakistan, regardless of whether they were previously freely importable or otherwise permitted.
The notification explicitly states that this restriction has been imposed in the interest of national security and public policy and will remain in effect until further orders. Any exceptions to this prohibition will require prior approval from the Government of India.
Impact of the Notification
This decision will have a far-reaching impact on trade between the two nations, effectively halting all legal channels for the exchange of goods. The key implications include:
- All imports from Pakistan into India and all transit of goods originating in or destined for Pakistan through India are prohibited with immediate effect.
- The government has cited national security and public policy as the primary reasons for imposing this stringent trade restriction.
- Businesses on both sides that were involved in trade or logistics related to goods from Pakistan will face immediate disruption and uncertainty.
- The notification specifically prohibits “direct or indirect” import or transit, suggesting an intent to prevent circumvention of the ban through third countries.
- Any specific exemptions to this prohibition will require explicit prior approval from the Indian government, indicating a highly controlled approach.