ISLAMABAD: In a tit-for-tat response to India’s latest trade restrictions, Pakistan has sanctioned all Indian shipping lines and directed Pakistani vessels not to visit Indian ports — a move that industry insiders warn may disrupt Pakistan’s external trade in the short term.

The Ministry of Maritime Affairs issued Shipping Order No. 01001/2025, titled Closure of Pakistani Ports for Indian Flag Carriers.

The order, effective immediately, states: “In view of the recent developments in the maritime situation with the neighbouring country, Pakistan, in order to safeguard maritime sovereignty, economic interests and national security, enforces certain measures with immediate effect.”

The directive bars Indian flag carriers from calling at any Pakistani port and restricts Pakistani flag carriers from visiting any Indian ports. Any exemption or dispensation will be considered on a case-by-case basis, the order added.

Sources in the Ministry of Maritime Affairs said that India had acted first by issuing a policy directive. According to Notifi­cation No. 06/2025-26, dated May 2, 2025, the Indian government amended its foreign trade policy to prohibit the import and transit of all goods originating in or exported from Pakistan.

Industry leaders warn move may disrupt country’s external trade in the short term

The Indian restriction, effective immediately, includes transit cargo not destined for India but routed through Indian ports. The Indian policy noted that shipping lines operating services calling at both Karachi and Indian ports would be forced to suspend their Karachi calls. As a result, carriers would need to seek alternative solutions for handling Pakistan-origin cargo. The estimated impact is a disruption of 6,000 to 7,000 TEUs (twenty-foot equivalent units) of weekly export volume from Karachi.

TEU is a standard unit of measurement in the shipping industry used to quantify the cargo capacity of container ships and ports. One TEU represents the volume of a standard 20-foot-long container.

Currently, around 4,000 ships call at Pakistani ports annually. Of these, approximately 2,000 are bulk carriers, transporting

commodities such as soybean, wheat, fertilisers and oil. The remaining 2,500 are container carriers, of which about 20 per cent are feeder ships.

Ban on Indian goods transit

Also on Sunday, Pakistan banned the import of Indian-origin goods transiting through Pakistan by land, sea and air and prohibited the transit of goods exported to India by third countries, a notification from the commerce ministry said.

The notification, which has been seen by Dawn.com, stated that these bans would not be applicable to goods for which a bill of lading or letter of credit had already been issued.

The ministry banned, “the import of Indian origin goods by third countries via sea, land and air; transiting through Pakistan; goods imported from India by third countries via sea, land and air, transiting through Pakistan; [and] the exports of third countries, to India via sea, land and air, transiting through Pakistan”.

The notification stated that the federal government issued the orders “in the interest of national security and in public interest”.

Responding to Dawn, Muha­mmad Rajpar, chairman of the Pakistan Ship’s Agents Asso­ci­ation (PSAA), said that the majority of large container ships visiting Pakistan carry up to 70pc Indian goods. He added that India’s restriction on port access is likely aimed at discouraging international lines from calling at Pakistani ports altogether.

In the short term, shipping lines are likely to divert Pakistan-origin cargo to regional hub ports like Jebel Ali, Khalifa, Salalah or Colombo for transhipment, he said. “From there, the cargo can be routed to Pakistan using feeder vessels that do not call at Indian ports,” he said. “This

will make Pakistani external trade costly and more time-consuming, but in the long term, buyers and sellers will adjust to this situation.”

The PSAA also wrote to the Ministry of Commerce and the Ministry of Maritime Affairs, seeking clarification on whether the order also applies to Indian cargo remaining on board (ROB) vessels during calls at Pakistani ports. “In the greater interest of Pakistan, we strongly suggest clarifying that this order does not apply to Indian ROB cargo,” the PSAA said.

The PSAA also called India’s trade action “unwarranted” and against international conventions.

Published in Dawn, May 5th, 2025

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