Archive · 29 Jun 2025
India’s Ban on Pakistani Cargo Ships Increases Costs
India has stopped allowing ships carrying goods from Pakistan to dock at its ports.
This means it takes longer and costs more for Pakistan to get its goods shipped.
Importers have to use smaller ships, which are more expensive, and things are taking much longer to arrive.
While exports haven't been greatly affected, costs for shipping and insurance have increased.
This ban is part of a larger issue where trade between India and Pakistan has been limited since 2019.
India's ban on ships carrying Pakistani goods has increased freight charges and transit times.
The ban, effective May 2, 2025, was imposed following the Pahalgam terror attack.
Pakistani importers are experiencing delays of 30 to 50 days due to reliance on feeder vessels.
Exporters report a rise in insurance costs, but the impact on exports is minimal.
Formal trade between India and Pakistan has been frozen since 2019, with a decline in bilateral trade.
- Who
- Pakistani importers and exporters are affected.
- What
- India's ban on Pakistani cargo ships has increased freight charges and delays.
- When
- The ban was implemented on May 2, 2025.
- Where
- India and Pakistan trade routes.
- Why
- The ban was imposed due to security concerns following the Pahalgam terror attack.
Importers
Exporters
Impact on Trade
Importers
Experience delays and increased costs.
Exporters
Minimal impact on exports.
- Ban Effective Date
- May 2, 2025
- Reason for Ban
- Pahalgam terror attack
- Impact on Importers
- Longer shipping times, higher freight charges
- Impact on Exporters
- Rise in insurance costs
- Trade Relations
- Frozen since 2019
- 2024 Trade Value
- $1.2 billion
