According to a research, India’s prohibition on ships bringing Pakistani commodities anchoring at its ports has resulted in a considerable increase in freight prices and longer transit times. Following the terror assault in Pahalgam on April 22, the ban, which went into force on May 2, forbids the direct or indirect import or transit of items that are produced in or exported from Pakistan. Importers from Pakistan claim that the change has created significant logistical difficulties.
Experts claim that because to the Indian restriction, mother vessels are no longer landing at Pakistani ports, which causes our shipments to be delayed by 30 to 50 days. Consequently, traders have resorted to feeder vessels, which are more costly and smaller, so driving up import prices. The cost of shipping and insurance has also increased, according to exporters. The wider trade impact has been minimized by some business speakers, though.
Pakistan’s export industry is suffering since it mainly relies on imported raw materials to add value. According to the paper, supply chain disruptions can have broader economic effects because the government maintains stringent import controls to protect foreign exchange reserves.
Since India levied a 200% import charge on Pakistani goods following the Pulwama terror attack in 2019, regular commercial relations between India and Pakistan have been mostly stopped. From $2.41 billion in 2018 to $1.2 billion in 2024, bilateral trade has drastically decreased. Between 2019 and 2024, Pakistan’s exports to India fell from $547.5 million to barely $480,000.
