India’s Ban on Pakistani-Origin Cargo Disrupts Trade, Drives up Freight Costs

Pakistan’s export and import ecosystem is facing new turbulence after India banned ships carrying Pakistani-origin cargo from anchoring at its ports, effective May 2, 2025. The decision, prompted by geopolitical tensions, has led to logistical bottlenecks and soaring freight and insurance costs.

With key shipping lines avoiding Pakistani ports, importers are experiencing delays of up to 50 days and are forced to rely on feeder vessels, driving up operational costs. Exporters, too, are seeing an increase in shipping and insurance charges, although the volume of export orders remains mostly stable.

As Pakistan’s value-added export sector depends heavily on imported raw materials, these disruptions — coupled with existing forex-driven import controls — could further compound supply chain issues. Since formal trade ties between India and Pakistan were severed in 2019, bilateral trade has seen a steep fall — from ₹20,602 crore ($2.41 billion) in 2018 to ₹10,258 crore ($1.2 billion) in 2024. Pakistan’s exports to India have plummeted to a mere ₹4 crore ($480,000) as of 2024.