India Expands Ban on Pakistan-Origin Goods, Including Transit Shipments via Third Countries

In response to rising tensions following the Pahalgam terrorist attack, India has expanded its ban on imports from Pakistan to include transit goods routed through third countries, such as the UAE, officials confirmed.

The Directorate of Revenue Intelligence (DRI) has begun intercepting consignments suspected to be of Pakistani origin, even those already in transit before the May 2 government notification. Typically, goods already at sea are exempt, but the current ban applies universally, regardless of their shipping status.

“Customs authorities are acting wherever suspicion arises. For example, a Pakistani-flagged vessel was recently barred from docking,” said a senior official. “While some traders are reporting losses, the ban was necessary to increase vigilance.”

There are also concerns that Pakistani products—particularly dates and dry fruits—may have been entering India indirectly via third countries like the UAE. India has raised the issue with Emirati officials, who defended their own production figures. However, the strict ban is seen as a deterrent to any potential circumvention of trade rules.

The May 2 import ban follows a series of earlier restrictions, including the closure of the Attari Integrated Check Post on April 24, effectively halting cross-border trade worth over Rs 3,800 crore.

According to the Global Trade Research Initiative (GTRI), about $10 billion worth of Indian goods reach Pakistan annually through trans-shipment routes. Despite declining trade in recent years, bilateral trade rebounded to Rs 3,886 crore in 2023–24, the highest since 2018–19.

India had previously granted Most Favoured Nation (MFN) status to Pakistan in 1996 to boost bilateral commerce. However, Pakistan never reciprocated, and India revoked the MFN status in 2019 after the Pulwama attack.

With India’s total trade volume exceeding $430 billion and Pakistan’s around $100 billion, bilateral trade has remained marginal at just $2 billion annually, despite a potential value of $37 billion estimated by the World Bank.