India Halts Postal and Trade Relations with Pakistan Amid Rising Tensions After Pahalgam Terror Attack

KKN Gurugram Desk | In a significant escalation following the terrorist attack in Pahalgam, Jammu and Kashmir, that killed 26 Indian tourists, the Government of India has suspended all forms of postal and parcel exchanges with Pakistan with immediate effect. This includes mail routed via both air and land channels, and marks yet another strong diplomatic and economic move as tensions between the two nuclear-armed neighbors surge.

The decision, announced through a public advisory issued by India Post, follows a broader policy shift that includes a complete ban on imports from Pakistan and the denial of entry to Pakistan-flagged ships at Indian ports. These actions are being implemented as part of India’s comprehensive strategy to isolate Pakistan economically and diplomatically in the wake of yet another terror incident attributed to Pakistan-backed groups.

The Trigger: Pahalgam Terror Attack Kills 26 Tourists

The immediate backdrop to the sweeping restrictions is the April 22 terror attack in Pahalgam, where heavily armed terrorists targeted a tourist convoy. The massacre, which left 26 civilians dead and several others injured, has been widely condemned both domestically and internationally. Intelligence agencies have reportedly traced the origin of the assailants to Pakistan-based terror outfits.

This incident has become a watershed moment in bilateral relations, leading India to take swift retaliatory steps across diplomatic, economic, and logistic channels.

India Suspends All Postal and Parcel Exchange with Pakistan

The Ministry of Communications, through India Post, released an official notification stating:

“The Government of India has decided to suspend the exchange of all categories of mail and parcels arriving from Pakistan via both air and surface routes, with immediate effect.”

This move will directly impact cross-border communication, including personal letters, business correspondence, and e-commerce shipments. According to officials, this is the first time such a complete suspension of postal services has been enforced since August 2019, when India revoked Article 370 in Jammu & Kashmir.

A Brief History of India-Pakistan Postal Services

Postal exchanges between India and Pakistan have historically remained limited and inconsistent. After the abrogation of Article 370, Pakistan had itself halted postal services unilaterally. India criticized this as a violation of the Universal Postal Union protocols, after which limited services resumed three months later.

However, with tensions again at an all-time high, India’s latest ban appears to be long-term and strategically comprehensive, effectively shutting down a major civilian channel of bilateral contact.

 Impact of Postal Suspension: Families, Traders to Bear the Brunt

The suspension is expected to affect:

• Families split across borders who relied on post for communication.

• Cross-border traders and small businesses using parcel services for logistics.

• NGOs and other entities engaged in social or educational collaborations.

Experts suggest that civilian diplomacy and people-to-people exchange will suffer most immediately. “While symbolic, such a move widens the emotional and cultural gap between the two nations,” said a senior political analyst.

 India Bans All Imports from Pakistan

In a separate but coordinated move, India has banned the import of all goods from Pakistan, both direct and via third countries. A notification issued by the Directorate General of Foreign Trade (DGFT) on May 2, 2025, states that under the Foreign Trade Policy (FTP) 2023, the import of all goods manufactured in or routed through Pakistan is prohibited until further notice.

This covers goods that were previously allowed under free import licenses or special economic provisions.

“In the interest of national security and public policy, the Government of India has suspended all imports from Pakistan with immediate effect. No exceptions shall be allowed without prior government approval,” the notification reads.

Trade Between India and Pakistan: Numbers Tell the Story

Between April 2024 and January 2025, India exported goods worth $44.76 million to Pakistan, while imports stood at a minimal $420,000.

Main imports from Pakistan during this period included:

• Fruits and dry fruits – approx. $80,000

• Seeds and medicinal plants – approx. $260,000

• Organic chemicals and niche bio-products

While trade has already dwindled significantly post-2019, this complete ban eliminates the remaining residual commercial ties between the two countries.

 Pakistan-Flagged Ships Barred from Indian Ports

In another assertive move, India has now prohibited all Pakistan-flagged commercial vessels from entering any Indian port. This ban also applies in reverse, as Indian ships have been directed not to dock at any Pakistani port.

This directive, issued on May 3, 2025, underscores the government’s heightened focus on maritime security and protecting Indian cargo, ships, and port infrastructure from “hostile or compromised vessels.”

“This measure is being implemented to safeguard Indian maritime assets, cargo, and related infrastructure in the public interest,” stated the Ministry of Ports, Shipping and Waterways.

Closure of Attari Border Checkpoint for Trade

Following the terror attack, the Indian government also closed the Attari land checkpoint, which was one of the few functional land routes for limited trade between the two countries. The checkpoint was primarily used for transporting perishable goods like cement, gypsum, dry fruits, and select agricultural products.

Its closure effectively marks a complete halt to all formal trade channels, whether by land, air, or sea.

 India Expels Pakistani Military Attaché, Suspends Indus Water Treaty

India has also announced the expulsion of Pakistan’s Military Attaché from New Delhi. This diplomatic step is often seen as a serious gesture of protest, reserved for moments of heightened confrontation.

Additionally, India has temporarily suspended the Indus Waters Treaty of 1960, a bilateral water-sharing agreement facilitated by the World Bank. While technical in nature, this move holds symbolic weight and sends a stern message on how far India is willing to go in response to terrorism emanating from across the border.

 History Repeats: Trade Tensions Post Pulwama Revisited

This is not the first time India has cut trade ties with Pakistan. A similar pattern was witnessed after the Pulwama attack in 2019, when India revoked Pakistan’s Most Favoured Nation (MFN) status and imposed 200% import duties.

Trade volumes since then have remained negligible, with both sides maintaining symbolic gestures rather than genuine economic exchange. The current wave of restrictions may finally eliminate the last surviving commercial threads between the two neighbors.

 Pakistan’s Economic Struggles to Intensify

Economists believe that India’s latest measures will further squeeze Pakistan’s already strained economy, which is battling inflation, foreign reserve depletion, and a growing debt crisis. Exports to India, though modest in scale, were still a reliable source of foreign exchange for certain sectors like agriculture and pharmaceuticals.

“Even if trade numbers were low, the psychological and strategic implications of India’s move are massive,” said a former Indian ambassador to Pakistan.

India’s multi-pronged response to the Pahalgam terrorist attack clearly signals a zero-tolerance approach toward Pakistan-sponsored terrorism. From suspending postal ties and sealing ports to banning imports and closing diplomatic channels, New Delhi is pushing for a comprehensive freeze in bilateral relations.

As both nations stand at yet another critical juncture, the future of diplomacy appears uncertain. While India focuses on tightening its borders and securing national interest, the long-term regional implications of this tit-for-tat dynamic could extend well beyond the Indo-Pak equation.

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