India Intensifies Crackdown on Pakistani Imports via Third Countries
In the aftermath of the Pahalgam terror attack, which claimed 26 lives, India has heightened its vigilance against indirect imports from Pakistan. Despite a direct trade ban, approximately $500 million worth of Pakistani goods—such as fruits, dry dates, textiles, soda ash, rock salt, and leather items—are reportedly being repackaged and relabeled in countries like the UAE, Singapore, Indonesia, and Sri Lanka to bypass restrictions .
Comprehensive Measures to Thwart Trade Evasion
To counter these tactics, the Indian government has issued an order banning all direct and indirect imports from Pakistan. This move aims to “choke Pakistani exports” and exert economic pressure on a nation already grappling with financial challenges. The customs department is on high alert, scrutinizing shipments from intermediary countries to detect and prevent the entry of Pakistani-origin goods .
Historical Context of Trade Restrictions
India’s stringent stance on trade with Pakistan intensified after the Pulwama terror attack in February 2019. In response, India revoked Pakistan’s Most Favoured Nation (MFN) status and imposed a 200% customs duty on its imports. These measures led to a significant decline in trade, with Pakistani imports dropping from $2.39 million in 2020-21 to nearly negligible levels in the first ten months of 2024-25 .
Broader Diplomatic and Economic Repercussions
The trade crackdown is part of a series of punitive actions by India, including suspending the Indus Waters Treaty, banning Pakistani ships from Indian ports, and revoking visas for Pakistani nationals. These steps underscore India’s commitment to holding Pakistan accountable for cross-border terrorism and reflect a broader strategy to isolate it diplomatically and economically .
