India’s ban on ships carrying Pakistani-origin goods, effective May 2, 2025, in response to the Pahalgam terror attack, has led to increased freight costs and shipping delays of 30–50 days, as reported by Dawn.

With direct access blocked, Pakistani importers now rely on slower feeder vessels, raising logistics and insurance costs. Exporters report limited impact on volumes but note rising operational expenses.

The move worsens Pakistan’s already strained supply chains, which rely on imported raw materials amid tight foreign exchange controls.

Formal trade ties between India and Pakistan have been frozen since 2019, with bilateral trade dropping from ₹20,602 crore in 2018 to ₹10,258 crore in 2024, and Pakistan’s exports to India plummeting to just ₹4 crore.