In a major step, the Indian government has completely banned the import or transit of all goods coming from or exporting from Pakistan. The decision was officially announced through a notification issued by the Directorate General of Foreign Trade (DGFT) on May 2, 2025, as part of the Foreign Trade Policy (FTP) 2023. This ban, which applies to both direct and indirect imports, will be implemented with immediate effect and will remain in place until further orders.

Ban on Import and Transportation of Goods from Pakistan

The new para 2.20A of the Foreign Trade Policy (FTP) 2023 states that the import or transit of all items originating from or exported from Pakistan is now restricted. This includes goods that are either freely importable or otherwise permitted under current trade laws. Prohibition is intended to address national security concerns and uphold public policy interests. 

According to the notification, prior approval of the Government of India is required for any exception to this comprehensive ban. The move is seen as a significant step in India’s efforts to manage trade relations in the region, especially with neighbouring Pakistan. Importers and traders in India are now required to ensure compliance with this directive. Failure to do so may result in legal action and penalties.

Implications for businesses and traders

With the implementation of this new ban, businesses involved in importing or transiting goods through Pakistan will face immediate challenges. Indian companies will have to look for alternative routes and suppliers to maintain the flow of goods that were previously sourced from or transited through Pakistan. The ban is part of the Indian government’s ongoing efforts to tighten controls on imports that threaten national security. The sanctions also reflect the government’s stance on using trade policy as a tool to influence foreign relations and public policy. Importers will need to carefully review their supply chain and ensure compliance with the new DGFT guidelines.

The recent ban on the import and transit of goods from Pakistan, as outlined in the new DGFT notification, marks a significant shift in India’s foreign trade policy. The measure, introduced under para 2.20A of the Foreign Trade Policy (FTP) 2023, reflects the government’s emphasis on national security and public policy. Businesses and traders must adapt to this change by exploring alternative sources and supply chains, while ensuring full compliance with the new restrictions. As the situation changes, it will be crucial to stay informed about any further updates or exceptions to maintain smooth operations in the Indian market.