India Imposes Immediate Trade Ban on Pakistan Amid Rising Tensions
In a sharp escalation of regional tensions, India has swiftly banned the import of goods originating from or routed through Pakistan. The announcement came after a deadly incident in Indian Illegally Occupied Jammu and Kashmir (IIOJK) heightened already strained relations between the two nations.
The Directorate General of Foreign Trade justified the trade ban on grounds of “national security and public policy,” and did not provide a timeline for any potential exemptions.
The move follows a tragic attack on April 22 in the Pahalgam area of IIOJK, where at least 26 tourists lost their lives. New Delhi has accused Pakistan of being behind the assault—an allegation Islamabad has categorically rejected. Pakistan has instead called for an unbiased international inquiry into the incident.
In response to India’s claims and possible retaliation, Pakistan has taken countermeasures, including shutting down trade routes at border crossings, closing its airspace to Indian aircraft, and expelling Indian diplomats.
Islamabad has also cautioned that any disruption of water flows under the Indus Waters Treaty by India would be seen as a declaration of war.
Further complicating matters, Pakistan recently dismissed India’s appeal to the International Monetary Fund (IMF) to reassess Islamabad’s economic aid program. A senior official from Pakistan’s finance ministry confirmed that the country’s $7 billion IMF package, secured last year, is proceeding as planned and remains vital for economic stability.
Additionally, Pakistan obtained $1.3 billion in climate resilience funding in March 2025, reinforcing its financial position. “This program is not only helping stabilize our economy—it’s also boosting investor confidence,” said Finance Adviser Khurram Schehzad. He added that recent IMF assessments and talks with global institutions in Washington had shown encouraging investor interest.
India’s diplomatic push to sway the IMF is being viewed in Islamabad as an attempt to isolate Pakistan on the global stage. However, neither India’s finance ministry nor the IMF has publicly responded to Pakistan’s objections.
The current standoff, marked by airspace restrictions, the freezing of treaties like the Indus Waters Treaty, and reciprocal diplomatic expulsions, has further destabilized an already volatile region.
