Pakistan In Trouble Again? India's Ban On Neighbour's Cargo Sparks Freight Chaos

In the wake of the recent terror attack in Pahalgam, India has imposed a sweeping ban on all maritime cargo connected to Pakistan, a move that has sharply escalated trade tensions between the two countries. According to a report in The Times of India citing Pakistani officials quoted in Dawn, the ban has caused severe disruptions and cost hikes for Pakistani traders.

The embargo, in effect since May 2, 2025, blocks all direct and indirect maritime shipments of Pakistani goods through Indian ports, including cargo transshipped via third countries such as the UAE, a previously common workaround for Pakistani exporters and importers.

“This action has disrupted the arrival of mother vessels in Pakistani ports, delaying imports by 30 to 50 days,” said Javed Bilwani, President of the Karachi Chamber of Commerce and Industry.

With India shutting down transshipment access, Pakistani businesses have been forced to reroute goods through feeder vessels operating via distant ports in the Middle East or Southeast Asia, leading to longer transit times and logistical inefficiencies.

“There’s no major impact on our exports, but insurance and shipping costs are rising,” said Aamir Aziz, a textile exporter. “Even before this ban, freight charges were already climbing.”
The textile sector, which forms the backbone of Pakistan’s exports, is especially vulnerable as it relies heavily on imported raw materials. The ban exacerbates existing challenges for Pakistan’s economy, which is grappling with low foreign exchange reserves and strict import controls to reduce its current account deficit.