India’s tit for tat on trade

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Adopting a calibrated approach after the Pahalgam terror attack on April 22, India has imposed a complete ban on imports of all goods from Pakistan with immediate effect on the grounds of national security and public policy. New Delhi has also suspended exchange of all categories of mail and parcels from Pakistan through air and surface routes.

Another order by the Directorate General of Shipping said any ship bearing the flag of Pakistan will not be allowed to visit any Indian port. “This order is issued to ensure the safety of Indian assets, cargo and connected infrastructure, in the public interest and for the interest of Indian shipping,” the order said. Meanwhile, the Navy Chief has met the Prime Minister, according to sources.

Besides banning entry of Pakistani ships into Indian ports, India also barred Indian ships from visiting Pakistani ports, according to the Directorate General of Shipping (DGS). The restrictions were put into place with immediate effect, officials said. Jammu and Kashmir Chief Minister Omar Abdullah, meanwhile, called on Prime Minister Narendra Modi here on Saturday and discussed various issues, including last week’s terror attack in Pahalgam, officials said.

The meeting at the prime minister’s residence lasted around 30 minutes, they said. This is the first meeting between the two leaders since the April 22 terror attack in which 26 people, mostly tourists, were killed.

As regards the latest steps taken in the aftermath of the dastardly act, these tough measures came days after India kept Indus Water Treaty(IWT)with Pakistan in abeyance and suspended visas of all Pakistani citizens.

Other steps included immediate shutting down of the Attari land-transit post, used for movement of certain kinds of goods. Besides, India announced expulsion of Pakistani military attaches.

In retaliation, Pakistan also announced suspension of all trade with India, including to and from any third country through Pakistan. It also rejected India’s suspension of the Indus Waters Treaty and said any move to stop the flow of water will be seen as an “act of war”. Further, the External Affairs Minister held talks with his Russian counterpart.

In the latest development, though the 200 per cent import duty imposed on Pakistani goods in 2019 after the Pulwama terror attack had effectively halted direct imports, also prohibits the entry of Pakistani goods routed through third countries.

India’s exports to Pakistan in April-January 2024-25 stood at $447.65 million, while imports were meagre $0.42 million. These imports were limited to niche items like figs ($78,000), Basil and Rosemary herbs ($18,856), certain chemicals, and Himalayan pink salt. The imports were $2.88 million in 2023-24.

A provision has been added in Foreign Trade Policy (FTP) 2023 “to prohibit direct or indirect import or transit of all goods originating in or exported from Pakistan with immediate effect until further orders”, the Directorate General of Foreign Trade (DGFT) said in a notification dated May 2.

It added this restriction is imposed in the interest of “national security and public policy”. Any exception to this prohibition will require approval of Government of India, the order said.

Inserting the provision under the heading “Prohibition on Import from Pakistan” in the FTP, it said: “Direct or indirect import or transit of all goods originating in or exported from Pakistan, whether or not freely importable or otherwise permitted, shall be prohibited with immediate effect, until further orders.”

“This will prohibit import of goods from Pakistan directly or through any other trade route,” the commerce ministry said. Bilateral trade between the two countries nosedived after the Pulwama terror attack. Besides imposing 200 per cent duty, India had also withdrawn Pakistan’s ‘Most Favoured Nation’ trade status. The bilateral trade dipped to $ 647.2 million in 2023-24 from $ 2.41 billion in 2017-18 and $ 2.27 billion in 2016-17. India on Saturday also suspended exchange of all categories of mail and parcels from Pakistan through air and surface routes amid escalating tensions between the two nations over the Pahalgam terror attack that killed 26 people.

The order suspending the services was issued by the Department of Posts that operates under the Ministry of Communication.

Citing “cross-border linkages” to the April 22 attack, India has promised severe punishment to those involved in the strike.

In a high-level meeting with the top defence brass, Prime Minister Narendra Modi on Tuesday asserted that the armed forces have “complete operational freedom” to decide on the mode, targets and timing of India’s response to the terror attack. The prime minister affirmed that it is a national resolve to deal a crushing blow to terrorism, they said after the meeting.

Daily Pioneer
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