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India-Pakistan Tensions Escalate as India Enforces Sanctions

India-Pakistan Tensions Escalate as India Enforces Sanctions
  • PublishedMay 5, 2025

Tensions between India and Pakistan have intensified following the recent terror attack in Pahalgam. In response to the deadly incident, India has introduced a comprehensive series of sanctions targeting trade, travel, communication, and diplomatic engagement with Pakistan. These developments reflect a broader strategy by New Delhi to assert its national interests while signaling zero tolerance for terrorism.

India Closes Ports to Pakistani Ships and Blocks Maritime Access

One of the earliest actions taken by India in the aftermath of the attack involved a maritime blockade. India officially barred all Pakistani-flagged merchant ships from accessing its ports. At the same time, Indian vessels were also restricted from entering any ports in Pakistan. The directive, issued by the Directorate General of Shipping (DGS), came into immediate effect and was invoked under Section 411 of the Merchant Shipping Act, 1958.

This measure is designed to safeguard Indian shipping, cargo, and associated infrastructure, and it applies to Indian-flagged ships globally, as well as to foreign ships operating within Indian waters. Although the directive is specific to vessels registered under Indian and Pakistani flags, ships registered with third-country flags are not currently affected.

While the ban is firm, the DGS noted that exemptions could be considered on a case-by-case basis, allowing some operational flexibility under special circumstances.

Total Import Ban Imposed on Pakistani Goods by India

In a major trade-related development, India’s Ministry of Commerce issued a notification banning all direct and indirect imports from Pakistan. The new rule was incorporated into India’s Foreign Trade Policy (FTP), prohibiting any transit or import of goods that originate in or pass through Pakistan.

This move follows the closure of the Attari-Wagah border, which had served as the only land-based trade corridor between the two nations. With this closure, the already minimal trade volume between the two countries has effectively ceased. In the fiscal year 2023–24, India imported only $3 million worth of goods from Pakistan, with many items coming via third-party countries such as the UAE, Sri Lanka, and Singapore.

While the financial impact on India remains limited, Pakistan could face challenges, especially in its pharmaceutical sector, which relies heavily on Indian raw materials and intermediates.

India Suspends All Postal and Courier Services from Pakistan

Another immediate measure included the suspension of all categories of mail and parcel services from Pakistan to India. The government clarified that both air and surface routes for postal exchanges would remain suspended until further notice.

In addition to the physical communication ban, India is reportedly exploring digital sanctions. This includes evaluating the feasibility of blocking IP addresses originating from Pakistan, which would further restrict online communication between the two countries.

Airspace Closure Announced for Pakistani Airlines

India also closed its airspace to all Pakistani aircraft — commercial, military, or leased — through a formal Notice to Airmen (NOTAM). This airspace ban, which took effect on April 30 and is expected to last until May 23, 2025, will significantly impact Pakistani airlines like Pakistan International Airlines.

With this closure, flights will be forced to take longer alternative routes, possibly through Sri Lanka and China, which will result in increased flight times and operational costs. In response, Pakistan has implemented a reciprocal airspace ban for Indian carriers.

India Considers Financial Pressure Through FATF and IMF Diplomacy

Beyond the immediate sanctions, India is reported to be considering diplomatic action in the financial domain. According to sources, India may push for Pakistan’s return to the Financial Action Task Force (FATF) grey list. Reinstatement to the list would subject Pakistan to increased international monitoring of its financial transactions, potentially deterring foreign investment and economic partnerships.

Additionally, India is expected to formally raise objections regarding the $7 billion loan package Pakistan received from the International Monetary Fund (IMF) in July 2024. India has expressed concerns that the funds could be misused to support activities linked to terrorism, and such objections could complicate Pakistan’s access to critical financial support.

Suspension of the Indus Waters Treaty Adds a New Dimension

A day after the Pahalgam attack, India announced the immediate suspension of the Indus Waters Treaty, a crucial water-sharing agreement signed in 1960 and brokered by the World Bank. The treaty governs the use of the Indus River system, vital for Pakistan’s agricultural economy.

Pakistan, in turn, has condemned the move and stated that any attempt to interfere with water flows would be viewed as an act of aggression. The suspension has added a new and serious dimension to the growing diplomatic and strategic rift between the two countries.

India Downgrades Diplomatic Presence and Expels Pakistani Officials

Diplomatic relations between India and Pakistan have also been reduced significantly. India declared several Pakistani diplomats, including military, naval, and air advisors, as persona non grata, giving them a week to exit the country.

Furthermore, India announced the withdrawal of its defence staff from the High Commission in Islamabad and plans to reduce the overall diplomatic strength in both High Commissions from 55 personnel to just 30. This reduction was completed by May 1, marking a significant downgrade in bilateral diplomatic engagement.

All Pakistani Visas Revoked and Border Closed

India also cancelled all existing visas granted to Pakistani nationals with effect from April 27. The government announced a complete suspension of visa services for Pakistani citizens and issued “Leave India” notices to all Pakistani nationals residing in India, except those on long-term residency permits and Pakistani Hindus.

The final date for departure was set for April 30, after which the Attari-Wagah border was officially closed to civilian traffic. This step essentially halts all legal movement of Pakistani citizens into or out of India.

Digital and Media Restrictions Extend to Pakistani Content and Personalities

India also expanded its response to the digital space by banning 16 Pakistani YouTube channels, including major news outlets such as Geo News, Dawn News, and Samaa TV. The move was justified on the grounds that these platforms were disseminating false and misleading narratives targeting India.

Additionally, India has banned the Instagram accounts of several Pakistani celebrities, including actors and singers like Hania Amir, Mahira Khan, and Atif Aslam. The government also blocked the release of a film titled Abir Gulal, starring popular Pakistani actor Fawad Khan.

In retaliation, Pakistan reportedly pulled an Indian song from all its national radio stations, signaling the widening of the sanctions to cultural and artistic exchanges.

A Multi-Layered Response Reflects Deepening Crisis

The range and severity of India’s sanctions mark one of the most comprehensive and multi-layered responses in recent years. By targeting Pakistan across maritime, airspace, trade, postal services, digital platforms, and diplomatic channels, India has effectively conveyed a message of serious concern without escalating into direct military confrontation.

Each measure, although implemented rapidly, appears to be part of a coordinated strategy that balances international diplomatic norms with domestic political pressures and national security priorities. The use of both traditional and non-traditional instruments — from port closures and visa bans to digital media restrictions — indicates a broader shift in how states respond to terrorism in an interconnected global environment.

A Period of Uncertainty with Global Implications

India’s new set of sanctions against Pakistan following the Pahalgam attack has created a fresh round of geopolitical uncertainty in South Asia. While the measures have been framed as defensive and interest-based, their long-term consequences on regional cooperation, economic interdependence, and diplomatic dialogue remain to be seen.

As both countries recalibrate their foreign policy positions, the international community will closely watch whether diplomatic channels reopen or tensions continue to escalate. The path ahead will likely depend not only on immediate national interests but also on broader global dynamics influencing peace, stability, and cooperation across the region.

Written By
Sheetal