Following the April 22 attack in Pahalgam, the Indian government on Saturday unilaterally banned Pakistani-flagged ships from entering its ports, further straining already fragile ties. A day earlier, it banned shipment of Afghan exports transiting Pakistani land.

India’s Ministry of Ports, Shipping and Waterways barred Pakistani-flagged vessels from docking at Indian ports, and similarly prohibited Indian ships from accessing Pakistani harbors, Indian media reported on Saturday.

The directive, issued under Section 411 of the Merchant Shipping Act, 1958, was justified by Indian authorities as being in the “national interest,” though it is widely seen as an attempt to exert pressure on Pakistan through economic coercion.

The ministry stated: “No ship bearing the flag of Pakistan shall be allowed to visit any Indian port, and an Indian-flagged ship shall not visit any ports of Pakistan,” with exemptions subject to case-by-case approval.

Ban on Afghan goods transiting via Pakistan

This ban is one of several sweeping actions by India following the Pahalgam incident, where 26 civilians were killed—including a Nepali national and a local guide. India has, without presenting internationally verifiable evidence, linked the attack to groups allegedly operating from Pakistani soil.

Among the measures India has enacted are:

1. Suspension of the Indus Waters Treaty, a 1960 water-sharing agreement seen as a cornerstone of regional peace.
2. Closure of the Wagah-Attari trade route, the only land-based commercial crossing between the two nations.
3. Reduction in diplomatic staff at both High Commissions.
4. A blanket ban on imports from Pakistan, including both direct and indirect trade.

According to a notification issued by India’s DGFT on May 2, imports of any goods originating from or routed through Pakistan are now strictly prohibited under India’s Foreign Trade Policy 2023.

Pakistan’s strong diplomatic and economic response

In retaliation, Pakistan has:

• Suspended all trade with India
• Closed its airspace to Indian aircraft
• Expelled Indian diplomats
• Warned India against any interference with Indus water flows, calling any such move an “act of war”

Federal ministers have reiterated that “Water is a lifeline for 240 million people; India cannot block it”, emphasizing the humanitarian and legal dimensions of the treaty.

Trade volumes decline sharply amid rising hostilities

Data from India’s own commerce ministry shows a dramatic fall in trade. Between April 2024 and January 2025, Indian imports from Pakistan fell to just $420,000—down from $2.86 million during the same period last year. Exports to Pakistan dropped to $447.7 million from $1.1 billion.

India’s major exports to Pakistan included cotton, chemicals, and food items, while Pakistani exports primarily comprised copper, fruits, and plastics.

These developments mark a dangerous shift in South Asia’s diplomatic climate, with both nuclear-armed neighbors taking hardline positions. Pakistan’s closure of airspace has already cost Indian airlines millions, and experts warn that escalation could have lasting economic and geopolitical consequences.