For years, India and Pakistan have been in a constant tug of war with each other – economically, socially and politically. While imports and exports have been halted since 2019, the recent ban on direct & indirect imports from Pakistan pushes the restrictions a step further. Curious to know more about this ban? Read on to find out what India imports from Pakistan, the hype behind the ban and why India chose "Now" to enforce it, along with its impact on the bilateral trade relationship between India and Pakistan.


What’s The Ban All About?

With so much buzz on the international front, what’s the hype behind the ban by India on Pakistan? Does it go beyond the customs memo? Absolutely! In brief, the Directorate General of Foreign Trade (DGFT) ordered the country to prohibit direct and indirect imports from Pakistan via third-world countries until further notice with immediate effect.
While both nations have already cut major ties with each other through banning airspaces, shutting borders and suspending visas, this act reinstates the country’s firm intolerance of terrorism.

Why Did India Impose The Trade Ban Now?

The real question lies in why India imposed this import-export ban now. Was it a coincidence? Well, to answer that, this imposition on Pakistan was no coincidence. In fact, India’s decision was an act of retaliation against Pakistan for its involvement in the Pahalgam terror attack, killing 26 innocent people, emphasizing the nation’s stance on public policy and national security.

The Import-Export Landscape Between India & Pakistan: Before & After

This isn’t the first time that India imposed a ban on Pakistan. In fact, the nation froze all trade in 2019. Despite this, textiles, dry fruits, cement and Himalayan Pink Salt  are a few products that India imported from Pakistan through third world countries like the United Arab Emirates, Sri Lanka and Singapore.
What’s more is that, according to import-export data, India majorly exported soybeans, red chillies, vegetables and plastic yarn from Pakistan.

What Does This Mean For Both Nations?

India’s latest move is indeed a trade choke with varying levels of impact. As India is quite self-reliant, especially through various initiatives like the “Make In India” movement, and doesn’t depend heavily on Pakistan. Due to this, the economic impact of it is quite minimal. 
But the story is quite different for Pakistan. The nation still needs quite a few Indian products and may continue to get them through alternative routes, if not directly. What’s more is that the damage for Pakistan is relatively more tangible, especially with limited access to Indian-based intermediaries and supply chain issues with what India imports from Pakistan.

The Road Ahead

All in all, the latest ban by India on Pakistan signifies another step in their complex trade relationship. One that is primarily driven by concerns of national security. While India may not be impacted significantly by this, it’s quite evident that Pakistan is under the weather with this one, opening tough challenges in the future. As both the nuclear-powered nations get through this, the future of their bilateral ties is uncertain. Will Pakistan assure India accountability and diplomacy on terrorism? only time will tell.

Frequently Asked Questions (FAQs)

1. What goods does India import from Pakistan?
As per import-export trade data, India imports organic chemicals, copper articles, salt, stones, and edible fruits & nuts from Pakistan.

2. Is India doing trade with Pakistan?
Before the Pahalgam attack on India, both nations did engage in trade. However, after these political tensions, India banned all types of direct and indirect trade between both nations.

3. What is the main export of Pakistan?
One of the major products for Pakistan's exports is textiles & garments, especially leather.

4. Who is Pakistan's largest export partner?
Based on global trade data, the largest partner for Pakistan's exports is the United States of America.

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