India Reimposes Full Trade Ban on Pakistan After Pahalgam Terror Attack, Reversing 2024 Relaxation

On May 3, 2025, India's Ministry of Commerce and Industry issued a notification banning all direct or indirect imports and transit of goods from Pakistan, reversing a recent trade relaxation that saw India-Pakistan trade reach $1.2 billion in 2024, a 127% increase from 2023.

This decision follows heightened tensions after the April 2025 Pahalgam terror attack in Jammu and Kashmir, where 26 men were killed by Terrorists, prompting Pakistan to shut its airspace and cut trade ties with India.

The notification, issued under the Foreign Trade (Development and Regulation) Act, 1992, aims to curb Pakistan's economic influence, potentially impacting its exports like pharmaceuticals and sugar, previously permitted despite a 2019 trade ban by Pakistan post-Article 370 revocation.