India’s Imports from Pakistan Expected to Drop to Zero from $0.5 Million
India has announced a complete ban on imports from Pakistan, a move that is expected to reduce trade to zero. Ajay Srivastava, the Founder of the Global Trade Research Initiative (GTRI), highlighted that India’s imports from Pakistan, which were already minimal at approximately $0.5 million annually, will now cease entirely. The ban is part of a broader set of measures taken by the Indian government in response to recent security concerns, including the Pahalgam attack.
Impact of the Trade Ban
The newly imposed trade ban signifies a continuation of India’s long-standing restrictions on imports from Pakistan. Following the Pulwama attack in 2019, India had already implemented a steep 200 percent tariff on Pakistani goods, which drastically reduced trade volumes. Between April 2024 and January 2025, imports dwindled to a mere $0.42 million, primarily consisting of niche products such as figs, herbs, and Himalayan pink salt. Srivastava noted that the economic impact of this ban on India is minimal, as the country does not rely heavily on Pakistani imports. He pointed out that the only item that might be missed is Himalayan pink salt, which is sourced from Pakistan.
Trade Dynamics Between India and Pakistan
Despite the ban on direct trade, the GTRI estimates that over $10 billion worth of Indian goods still reach Pakistan through third-country trade routes. Goods are reportedly being rerouted through ports in Dubai, Singapore, and Colombo to bypass the official restrictions. This indicates that while direct imports from Pakistan will cease, the demand for Indian products remains strong in Pakistan, leading to alternative trading methods.
Official data from the High Commission of India in Islamabad lists various items that India has imported from Pakistan in the past, including copper, edible fruits and nuts, cotton, and organic chemicals. Conversely, India’s exports to Pakistan encompass a wide range of goods, such as cotton, food products, and pharmaceuticals. The ongoing trade dynamics reflect a complex relationship where, despite restrictions, trade continues through indirect channels.
Broader Measures by the Indian Government
The import ban is part of a series of measures taken by the Indian government following the Pahalgam attack. These actions include the closure of the Integrated Check Post (ICP) at Attari and the suspension of the SAARC Visa Exemption Scheme for Pakistani nationals, who were given a limited timeframe to leave India. Additionally, there has been a reduction in diplomatic staff at both nations’ High Commissions.
Furthermore, India has announced the suspension of the Indus Waters Treaty, a significant agreement established in 1960 that governs water sharing between the two countries. These measures indicate a significant escalation in tensions and a shift in diplomatic relations, as India seeks to address security concerns through stringent trade and diplomatic restrictions.
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