Saturday, May 3, 2025

Namo crackdown on backdoor imports :: India bans direct or indirect import of goods from Pakistan ..... "already fragile economic growth" will be hit badly :::: 'jhatka' after Indus water restrictions


Blunders and repeated offence have a way of catching up with people at the worst possible time. Pakistan has to learn this in 2025.


Pakistan is dependent on India for pharmaceutical supplies. 

With India halting all forms of trade, a rattled Pakistan has earnestly started looking at alternative avenues. 

In February 2019 post-Pulwama, India imposed a 200% customs duty on all goods imported from Pakistan.


This action was taken after revoking Pakistan's Most Favored Nation (MFN) status, effectively raising the duty on all imports from Pakistan to a very high level. 


 India bans imports from Pakistan in another strict measure post Pahalgam


The Commerce Ministry notification said the provision was imposed in the interest of national security and public policy.


The ban is expected to significantly impact Pakistan's export sector, particularly affecting goods like cement, textiles, and agricultural products. 



The move comes after India announced the closure of the Attari-Wagah land border following the Pahalgam attack, crippling bilateral trade.








As per the Union Commerce Ministry notification, a newly added provision in the Foreign Trade Policy (FTP) mentions prohibition of "direct or indirect import or transit of all goods originating in or exported from Pakistan with immediate effect until further orders".


This is another tough move in retaliation to the Pahalgam terror attack, 


While direct imports from Pakistan have been minuscule, some goods were entering the country through indirect channels or via third countries. 


Another order by the Directorate General of Shipping said any ship bearing the flag of Pakistan won't be allowed to visit any Indian port.

"This order is issued to ensure the safety of Indian assets, cargo and connected infrastructure, in the public interest and for the interest of Indian shipping," the order said.  


New Delhi already has announced the closure of trade through the Attari-Wagah border - the only land border crossing between the two countries.

Pakistan has also suspended all trade with India.


Direct trade between the two countries had already come down sharply after India withdrew the Most Favoured Nation (MFN) status from Pakistan after the Pulwama attack in 2019 that left over 40 soldiers dead.  


The Attari-Wagah border saw trade worth Rs 3,886.53 crore in 2023-24. India's strategic moves are expected to have a severe economic impact on small traders and manufacturers in Pakistan.


While India's imports from Pakistan have been minuscule in recent years, some goods are routed through ports in Dubai, Singapore and Colombo to beat trade restrictions.


As per data, in 2023-24, India imported goods, mainly agricultural commodities, worth USD 3 million from Pakistan.


However, Pakistan is dependent on India for pharmaceutical supplies. With India halting all forms of trade, a rattled Pakistan has earnestly started looking at alternative avenues to meet its pharmaceutical needs.  



India and Pakistan have had a weak trade relationship since 1947, with several breaks over the years. However, indirect trade through Dubai has gone on without any pause. 


Dubai is one of the main centres for trade between the two countries through a third party, Nisha Taneja, professor at ICRIER, wrote in an article for ET Online. 

Important goods sent through Dubai include gold jewellery, textiles, machinery, and appliances.






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