India Imposes Total Ban on Imports from Pakistan Following Pahalgam Terror Attack

India has announced a sweeping and immediate ban on the direct and indirect import of all goods from Pakistan, intensifying its economic and diplomatic response to the recent terrorist attack in Pahalgam that killed 26 people. The move, effective from May 2, follows findings by Indian authorities that linked the attack to cross-border elements. The decision marks a significant escalation in New Delhi’s ongoing efforts to pressure Islamabad over what it alleges is continued support for terrorism.

The Ministry of Commerce and Industry, in a formal notification, amended India’s Foreign Trade Policy to impose the ban, citing national security and public policy concerns. The ban will remain in effect “until further orders,” and applies to all goods that originate in or are exported from Pakistan, regardless of the route taken—directly or via third countries. This measure closes any loopholes that might allow Pakistani products to enter India indirectly through countries like the United Arab Emirates or Afghanistan.

The Directorate General of Foreign Trade (DGFT), responsible for regulating India’s external trade, clarified that any exemption to this comprehensive ban would require prior, explicit approval from the central government in New Delhi. The notification signals India’s determination to use economic tools as part of its broader strategy to isolate Pakistan on the global stage in response to cross-border terrorism.

The decision comes just over a week after the April 22 terrorist attack in Pahalgam, Jammu and Kashmir. Indian intelligence agencies have reportedly established links between the attackers and terrorist groups based in Pakistan. This has led to a broader reassessment of bilateral trade and financial relations with Pakistan, even though formal trade relations between the two countries had already been suspended following the Pulwama attack in 2019.

In addition to the trade ban, India is considering several measures to further isolate Pakistan financially. One major effort involves pushing for Pakistan’s return to the Financial Action Task Force (FATF) grey list. The FATF is the global watchdog for money laundering and terror financing. Being placed on the grey list can significantly affect a country’s ability to access international financial systems and secure funding.

The Indian government has also revealed plans to reach out directly to key multilateral development banks (MDBs), such as the World Bank, the International Monetary Fund (IMF), and the Asian Development Bank (ADB), urging them to reconsider providing financial assistance to Pakistan. According to senior government officials, this diplomatic initiative aims to restrict the financial channels that India believes enable Pakistan to fund and support terrorist activities.

India's decision to pursue these measures highlights a strategic shift toward using economic and diplomatic levers to counter terrorism. The move also reflects increasing frustration in New Delhi over what it sees as Pakistan’s failure to dismantle terror networks operating from its soil. Officials say the combined approach—banning trade, pushing FATF action, and lobbying MDBs—is designed to send a strong message and cut off support mechanisms for terrorism emanating from across the border.

The developments underscore escalating tensions between the two nuclear-armed neighbours, with India using all available tools to counter perceived threats to its national security.