India’s May 2025 Ban On Pakistani Goods Sparks Shipping Crisis And Higher Insurance Costs

Following the Pahalgam terror attack, India imposed a comprehensive ban, effective May 2, 2025, on the direct or indirect import or transit of goods originating in or exported from Pakistan.

The India-Pakistan trade relations soured after the Pulwama terror attack, following which India raised the import duty to 200 per cent on all goods imported from Pakistan.

Source : Freepik

India's ban on ships carrying Pakistani goods from anchoring at its ports has increased freight charges and transit time, according to a media report.

Following the Pahalgam terror attack, India imposed a comprehensive ban, effective May 2, 2025, on the direct or indirect import or transit of goods originating in or exported from Pakistan.

Pakistani importers said the Indian ban has resulted in longer shipping times and higher freight charges, Dawn newspaper reported on Sunday.

“Mother vessels are not coming to Pakistan due to this Indian action, which delays our imports by 30 to 50 days,” said Javed Bilwani, President of the Karachi Chamber of Commerce and Industry.

He said importers are now relying on feeder vessels, which raises costs.

Exporters also reported a spike in shipping and insurance costs following the Indian ban. However, they said the overall impact on exports remains minimal, the paper reported.

“There is no significant impact on exports..., except for a rise in insurance costs. Shipping charges had already gone up even before the escalation,” said Aamir Aziz, an exporter of textile made-ups.

Pakistan’s exports are heavily reliant on imported inputs for value addition. With the government maintaining tight controls on imports to conserve foreign exchange, any disruption in supply chains has broader economic implications, the paper said.

The India-Pakistan trade relations soured after the Pulwama terror attack, following which India raised the import duty to 200 per cent on all goods imported from Pakistan.

Formal trade relations between Pakistan and India have remained frozen since 2019, and bilateral trade declined from USD 2.41 billion in 2018 to USD 1.2 billion in 2024. Pakistan’s exports to India decreased from USD 547.5 million in 2019 to just USD 480,000 in 2024.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)