India’s Ban on Pakistani Cargo Ships: Impact on Shipping Costs and Freight Delays Revealed

Islamabad: A recent media report highlights the challenges facing Pakistani importers due to India’s ban on ships carrying Pakistani goods. This ban, effective May 2, 2025, was introduced after the tragic Pahalgam terror attack and has significantly affected shipping dynamics.

Pakistani businesses are feeling the pinch. Javed Bilwani, President of the Karachi Chamber of Commerce and Industry, noted that this ban has delayed imports by 30 to 50 days. “Mother vessels are not coming to Pakistan,” he explained, meaning ships that usually handle large cargoes are now avoiding the route. Importers have had to switch to smaller feeder vessels, which are more expensive, increasing overall shipping costs.

Exporters are also facing higher shipping and insurance costs. Aamir Aziz, a textile exporter, mentioned that while shipping costs were already on the rise, they have become a more significant burden due to the ban. “The overall impact on exports is minimal,” he stated, but added that the increase in insurance costs is a concern.

This situation reveals deeper issues in Pakistan’s economy. Many local industries depend on imported materials for producing goods. With the government’s tight control over imports to save foreign currency, disruptions in supply chains could lead to broader economic challenges.

Trade between India and Pakistan has been rocky for some time, especially since the Pulwama terror attack. In 2019, India raised import duties on Pakistani goods to 200%, which strained relationships further. As a result, formal trade has been frozen since then. The impact is evident; bilateral trade dropped from USD 2.41 billion in 2018 to just USD 1.2 billion in 2024. Pakistan’s exports to India plummeted dramatically—falling from USD 547.5 million in 2019 to a mere USD 480,000 by 2024.

This tension has led to a significant shift in trade dynamics in the region. As businesses continually adapt to these challenges, they must also navigate the complexities of international relations and evolving market conditions. In this context, experts are urging for renewed dialogue and more stable conditions to facilitate trade and economic growth on both sides.

For more detailed insights, you may check resources like Dawn and economic reports available from World Bank.

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