After Pahalgam Attack, India Delivers Economic Blow to Pakistan Along with Military Strike

National News: Following the terrorist attack in Pahalgam, Jammu and Kashmir, India has not only retaliated strongly on the military front through Operation Sindoor but has also dealt a major economic blow to Pakistan. Taking a firm stand, India has enforced stringent sanctions on imports from Pakistan. Furthermore, vessels carrying Pakistani cargo have been banned from entering Indian ports, directly disrupting Pakistan’s shipping logistics.

Higher Costs, Longer Delays

According to a report by Pakistan’s leading daily, Dawn, traders in Pakistan are now facing severe disruptions due to India’s sanctions. Javed Bilwani, President of the Karachi Chamber of Commerce and Industry, stated that since India's restrictions came into force, major shipping lines have stopped docking at Pakistani ports, resulting in import delays of 30 to 50 days.

Shift to Costlier Feeder Vessels

Bilwani explained that Pakistani importers have been forced to rely on smaller feeder vessels, which are not only slower but also more expensive than standard container ships. This shift has significantly increased shipping costs. Moreover, the insurance premiums on cargo shipments have also gone up due to heightened risk perception.

Exports Largely Stable, But Overhead Costs Rising

Aamir Aziz, a textile med-ups exporter, noted that India’s sanctions have had limited impact on export volumes, but the rising insurance costs are proving to be a challenge. “Shipping costs were already high, and now increased insurance premiums have further added to the financial burden,” he remarked.

India Raises Import Duty on Pakistani Goods to 200%

In the aftermath of the Pahalgam attack, India adopted a hardline stance, hiking import duties on all Pakistani goods by 200 percent. The move was a direct response to Pakistan’s continued support for cross-border terrorism. As a result, trade relations between the two nations have suffered a major setback. From a peak of $2.41 billion in 2018, the trade volume has shrunk to just $1.2 billion in 2024.

India’s Imports from Pakistan Nearly Wiped Out

In 2019, India's imports from Pakistan stood at $547.5 million. By 2024, that figure had plummeted to a mere $4.8 million. This sharp decline is a clear indication that India has taken serious and strategic steps to economically isolate Pakistan, alongside its diplomatic and military efforts.