In the wake of the deadly Pahalgam terror attack, India has shifted its strategy from diplomatic condemnation to a forceful economic and diplomatic offensive against Pakistan. This escalation marks a new phase in India’s retaliatory measures, focusing on long-term economic damage and international isolation for Islamabad. The recent steps are designed to not only punish Pakistan for its support of cross-border terrorism but to send a clear message that India will prioritize sustained economic pain over symbolic gestures.
New Restrictions on Pakistan’s Trade and Transportation
India has implemented several aggressive measures targeting Pakistan’s maritime and airspace access, trade routes, and communication systems. The latest moves include:
- Ban on Pakistani Merchant Ships: India has prohibited Pakistan-flagged merchant vessels from docking at Indian ports, effectively blocking maritime access to one of the world’s largest economies. This ban forces Pakistani ships to take longer, costlier routes through countries like Oman or the UAE, severely impacting Pakistan’s shipping industry.
- Airspace Closure: In retaliation for Pakistan’s closure of its airspace to Indian carriers, India has now barred Pakistani aircraft from flying through its airspace. This creates significant detours for commercial airlines, increasing operational costs and reducing the viability of certain routes.
- Trade Restrictions: India has imposed a complete ban on the import of goods from Pakistan, directly or indirectly. This ban targets the re-routed trade that had continued through third countries, with sectors like textiles, dry fruits, and surgical tools heavily impacted. Pakistan’s informal trade routes with India are now fully shut down, worsening the country’s economic outlook.
- Suspension of Postal Services: In a rare and symbolic move, India has also halted all postal services between the two countries, severing another link that had allowed people-to-people contact, even during periods of tension.
Impact on Pakistan’s Economy
These measures are hitting Pakistan’s already fragile economy hard. Bilateral trade between the two countries has sharply declined in recent years, and the latest restrictions will deepen this downward spiral. Pakistani exporters, particularly those dealing in textiles and agricultural products, will face significant losses due to the closure of informal trade routes to India. The suspension of services like shipping and postal exchanges also isolates Pakistan further, making it harder for the country to maintain economic connections with global partners.
The situation is compounded by Pakistan’s struggling aviation sector, which is now forced to navigate through more expensive and less efficient air routes. This will increase operational costs for airlines and may lead to fewer international connections, further isolating Pakistan economically and diplomatically.
A Broader Diplomatic Strategy
These actions are part of a broader diplomatic strategy by India to isolate Pakistan internationally. The moves coincide with India’s ongoing efforts to lobby for Pakistan’s grey-listing at the Financial Action Task Force (FATF) and to increase scrutiny over Pakistan’s alleged sponsorship of terrorism. By targeting Pakistan’s trade, transportation, and communication sectors, India is sending a clear message to global powers: Pakistan must be held accountable for its actions.
As Pakistan faces growing economic and diplomatic isolation, the window for repairing relations with India narrows significantly. With most formal and informal ties severed, Pakistan’s future diplomatic and economic recovery appears increasingly uncertain.
