In a rapidly unfolding series of events following the recent terror attack in Pahalgam, India has taken strong and decisive steps against Pakistan. The Indian government has not only banned the import of all goods from Pakistan but also stopped accepting any mail or packages coming from there. Additionally, it has barred Pakistani ships from tying up at Indian ports, marking a significant deterioration in bilateral relations.
India Announces Total Ban on Imports from Pakistan
Previous week, India officially announced a complete ban on all imports from Pakistan citing reasons of national security and public interest. This move is expected to be the first of many measures aimed at tightening control over cross-border exchanges. According to a notification issued by the Ministry of Commerce on May 2nd that the ban applies to all goods coming directly or indirectly from Pakistan, regardless of whether they were previously allowed or not.
The government made it clear that any kind of import from Pakistan – whether freely allowed before or under special permission – is now completely prohibited. If there is any exception to be made, it will require prior approval from the Indian government.
This is not the first time India has taken strict economic action against Pakistan in response to terrorism. After the Pulwama terror attack in 2019, India had imposed a steep 200% import duty on all goods coming from Pakistan. This included essential items like fresh fruits, petroleum products, and cement. The current ban builds upon that earlier decision by completely stopping trade rather than just making it more expensive.
Closure of Wagah-Attari Route Shuts Down Final Trade Link
The situation worsened further after last week’s terror strike in Jammu and Kashmir’s Pahalgam. As a direct result, India also closed the Wagah-Attari border crossing – the last remaining route for trade between the two countries. With this closure, all commercial exchanges with Pakistan have effectively come to a standstill.
Meanwhile, Pakistan claimed to have successfully tested a ballistic missile with a range of 450 kilometers. Indian sources have called this move a serious provocation, especially considering the timing – coming so soon after the Pahalgam incident. The missile test is being viewed in New Delhi as an attempt to escalate an already tense situation.
India’s recent actions underline its commitment to national security and its zero-tolerance stance on terrorism. By cutting off trade routes and halting shipments, the government is sending a strong message to Pakistan. At the same time, the missile test by Pakistan has only added to the concerns, making the path ahead uncertain and possibly more tense.
The serene Baisaran valley became a scene of horror on April 22nd when terrorists connected to Lashkar-e-Taiba, a group with ties to Pakistan, unleashed a barrage of gunfire. This brutal attack tragically claimed the lives of 25 Indian citizens and one person from Nepal. Among those killed were individuals holding important positions in India, including officers who were not on duty from the Navy and the Intelligence Bureau.
India's Swift and Strong Reaction
In the immediate aftermath of this terrible act, India responded with a series of significant actions directed towards Pakistan. One of the most impactful steps taken was the suspension of the Indus Waters Treaty. This crucial agreement has allowed Pakistan to draw water from three of the six rivers that make up the Indus system. India's decision to halt this water flow has deeply concerned Pakistan, which has described it as nothing short of an "act of war," highlighting the severity of the situation and the potential for escalating tensions between the two nations.
Adding to these measures, within two days of the attack, India's government in New Delhi announced the cancellation of most visas that had been granted to Pakistani citizens. This included medical visas, which are often sought by individuals needing specialized treatment in India. This decision underscores India's firm stance and its willingness to take even measures that could affect ordinary citizens in Pakistan.
Prime Minister Modi's Clear Message and Strategic Move
Earlier in the week, a significant meeting took place involving Prime Minister Narendra Modi and the top leaders of India's armed forces. During this high-level discussion, a powerful message was conveyed: the Prime Minister granted the forces "complete operational freedom." This means they have the authority to decide how, where, and when India will respond militarily to the attack in Pahalgam. This move signals a strong intent to retaliate and sends a clear message that India will not tolerate such acts of terrorism.
Reinforcing this unwavering resolve, Prime Minister Modi reiterated India's commitment to strong action. Speaking alongside the President of Angola, Joao Manuel Goncalves Lourenco, he emphasized that India stands "firmly united" against terrorism and those who support it. He also expressed gratitude to Angola for their sympathy towards the victims of the Pahalgam attack. The Prime Minister's words underscored India's determination to take "firm and decisive actions" against both the terrorists themselves and the entities backing them, while also acknowledging international support in this fight.
Overview of Trade Before Tensions Rose
In the financial year 2017-18, trade between India and Pakistan reached a total of $2.41 billion, slightly higher than the $2.27 billion recorded in 2016-17. During this period, India exported goods worth $1.92 billion to Pakistan, while importing products valued at $488.5 million. The key items that India imported from Pakistan at the time were fruits and cement.
Withdrawal of the MFN Status: A Turning Point
India had granted Pakistan the status of “Most Favoured Nation” (MFN) in 1996 under the framework of the World Trade Organization (WTO). This designation is meant to ensure fair trade treatment, meaning that all WTO member countries should treat each other equally in terms of customs duties and trade regulations.
However, in 2019, India decided to revoke Pakistan’s MFN status. This decision followed rising tensions between the two nations, mainly due to security concerns. To justify the move, India used the security exception clause available under WTO rules. This clause allows a country to take action that may violate normal trade obligations if it feels its national security is at risk. Although both India and Pakistan are WTO members, only India had honoured the MFN agreement—Pakistan never reciprocated.
Heavy Import Duty as an Economic Weapon
Soon after withdrawing the MFN status, India imposed a 200% import duty on goods coming from Pakistan. This massive increase in tariff rates acted as a near-total ban on Pakistani imports, severely reducing trade activity. The high cost of imports made it practically impossible for Pakistani goods to remain competitive in the Indian market.
Pakistan’s Shifting Stance on Trade Access
Back in 2012, Pakistan had announced its intention to give India MFN status. However, strong opposition within the country forced the government to backtrack. Instead, Pakistan proposed offering India "Non-Discriminatory Market Access" (NDMA) -a status similar to MFN but less politically sensitive. Yet, even this alternative was never officially granted.
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