India and Pakistan Halt Maritime Trade
Amid the ongoing tension between India and Pakistan, the two countries have taken further steps to limit their trade relations. On Saturday, the Indian government suspended imports of goods from Pakistan. The ban was imposed with immediate effect, with the government saying the measure is in the interest of national security.
In the same spirit, no Pakistani ships will be allowed to enter Indian ports. Indian flagged vessels were also banned from visiting Pakistani ports. “This order is issued to ensure safety of Indian assets, cargo and connected infrastructure,” said the Directorate General of Shipping.
Islamabad has responded with similar measures in a tit-for-tat move, halting maritime trade and postal services with India. The Wagah-Attari crossing, the only land border between the two countries, remains closed.
Although India and Pakistan have been arch-rivals for decades, matters became worse after the April 22 terrorist attack in Pahalgram, a resort town in the Indian-administered sector of contested Kashmir. New Delhi accused Islamabad of involvement in the attack, which saw at least 26 people killed.
The restrictions on imports and exports come at a time when the bilateral trade between India and Pakistan has been plummeting. This is largely as a result of trade barriers, which India started to introduce in 2019 following yet another terrorist attack in its Kashmir region.
Since then, bilateral trade has fallen from a high of over $2 billion to just $1.2 billion in 2024. For instance, Pakistani exports to India dropped from $547.5 million in 2019 to just $480,000 last year. The main exports from Pakistan include glassware, copper, organic chemicals, fruits and nuts.
On the other hand, India’s main exports to Pakistan include pharmaceuticals, vegetables, plastic, coffee, cereals and dairy products. Data from India’s Ministry of Commerce show that in the period between April 2024 and January 2025, Indian exports to Pakistan amounted to $447 million.
But some trade experts believe that unofficial trade between India and Pakistan has soared, with traders turning to creative (and controversial) workarounds to avoid scrutiny. One such method is third-country transshipment via global ports such as Dubai, Singapore and Colombo, according to Ajay Srivastava, founder of India-based think tank Global Trade Research Initiative (GTRI).
GTRI estimates that over $10 billion worth of Indian goods reach Pakistan annually via such third-country transshipments.
“While not always illegal, this grey-zone strategy highlights how trade adapts faster than policy. Trade finds a way, even when diplomacy doesn’t. Supply chains bend, not break, especially when there is demand on the other side,” added Srivastava.