India said on Saturday it had banned the import of goods coming from or transiting via Pakistan and barred Pakistani ships as tensions rise between the nuclear-armed neighbours in the wake of a deadly attack on tourists in India-held Kashmir.
India's Directorate General of Foreign Trade said in a notification that the ban would take effect immediately. "This restriction is imposed in the interest of national security and public policy," it said.
At least 26 people were killed in last week's attack on a mountain tourist destination in the Pahalgam area of the occupied Kashmir valley.
India has accused Pakistan of involvement in the attack, which Islamabad denies. Pakistan has said it has "credible intelligence" that India intends to launch military action.
Pakistan's retaliatory measures have included halting all border trade, closing its airspace to Indian carriers and expelling Indian diplomats.
It has also warned that any attempt to prevent the flow of river water promised under a decades-old treaty would be considered an act of war.
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On Saturday, India said Pakistani-flagged ships would not be allowed to visit any Indian port, and Indian flagged-ships would not visit any ports in Pakistan.
"This order is issued to ensure safety of Indian assets, cargo and connected infrastructure, in public interest and for interest of Indian shipping," the Directorate General of Shipping said in a statement.
Trade between the two nations has dwindled over the last few years.
Pakistan's exports decline by 19% in April
Meanwhile, Pakistan's exports in April 2025 saw a sharp decline of over 19%, falling to $2.14 billion, according to the Pakistan Bureau of Statistics. This marks a significant drop from March 2025, when exports stood at $2.64 billion.
During the same month, imports rose by 14.52%, crossing $5.52 billion. As a result, the trade deficit surged by 55.20% compared to the previous month.
On a year-on-year basis, exports in April 2025 fell by 8.93% compared to April 2024.
Despite the recent monthly decline, cumulative exports for the first ten months of the current fiscal year (July to April) increased by 6.52%, reaching $26.85 billion. However, imports during the same period also rose by 7.37%, exceeding $48 billion.
This led to a trade deficit of $21.35 billion from July to April — an 8.81% increase compared to the corresponding period last year.
Furthermore, the International Monetary Fund (IMF) has dismissed India's request to halt Pakistan's financial aid, confirming that the scheduled Executive Board meeting on May 9 will proceed as planned.
The meeting will consider Pakistan’s financial assistance requests, including a significant $2.3 billion aid package.
Mahir Benisi, an IMF representative, clarified that the meeting would take place on May 9 without delay, and Pakistan's request for assistance will be discussed. When asked about India's objections, Benisi emphasized that the IMF could not comment on the concerns of other countries.
"The board meeting will be held as scheduled, and we cannot comment on the concerns of other nations," he told SAMAA.
