Escalating tensions: India and Pakistan completely halt trade and maritime traffic

Relations between India and Pakistan have suffered a new blow - both countries have decided to completely suspend bilateral trade. The Indian government has officially banned the import of all goods originating from or transiting through Pakistan. In response, Islamabad has taken symmetrical measures, which have only deepened the rift between the neighbors.

This was reported by Bloomberg with reference to the Directorate General of Foreign Trade of India. The ban came into effect on May 2, 2025. This decision was part of a larger package of steps aimed at restricting all forms of economic and logistical cooperation with Pakistan.

Over the weekend, the Directorate General of Shipping of India also adopted a resolution according to which ships flying the Pakistani flag are prohibited from entering Indian ports. At the same time, ships under the Indian flag are no longer allowed to dock in Pakistani ports. The document emphasizes that such a step was necessary to “ensure the security of Indian assets, cargo and related infrastructure”.

The situation worsened after the incident in Kashmir, which India interpreted as an attack sponsored by Pakistan. Since then, New Delhi has initiated a series of punitive measures, including suspending the Indus Waters Treaty of 1960, canceling visas for Pakistani citizens, expelling Pakistani diplomats and restricting the use of its airspace.

In response, Pakistan announced its own retaliatory steps: it stopped trade with India, closed its airspace to Indian aircraft and ordered Indian diplomats to leave the country. In addition, Islamabad stated that any attempt to change the volume of water provided for by the interstate treaty would be considered an act of aggression.

The latest statistics from the Indian Ministry of Commerce show a sharp decline in trade between the two countries. Between April 2024 and January 2025, India imported only $420,000 worth of goods from Pakistan, almost seven times less than the $2.86 million it imported in the same period last year. These figures only underscore the depth of the gap in trade relations between the two countries, which have already been burdened by long-standing political conflicts.