KARACHI – India’s move to block ships carrying Pakistani goods from entering its ports has failed to significantly impact Pakistan’s foreign trade, according to shipping industry experts.
On May 2, India imposed a ban on vessels transporting cargo to or from Pakistan, barring them from passing through Indian ports or land routes. The restriction followed India’s military operation “Operation Sundoor,” which ended within four days due to strong Pakistani retaliation.
Initially, India aimed to disrupt Pakistan’s trade, but shipping companies quickly adjusted. They separated Pakistan-bound cargo from Indian routes and shifted away from relying on Indian ports. However, importers reported delays and higher costs.
President of the Karachi Chamber of Commerce and Industry, Javed Bilwani, stated that larger cargo ships are now avoiding Pakistan. This has led to 30 to 50-day delays and a growing dependence on smaller feeder vessels, raising transportation costs.
Exporters also confirmed a rise in shipping and insurance charges after India’s aggression. However, textile exporter Amir Aziz noted that the overall impact on exports has remained minimal, aside from the increased insurance costs.
Meanwhile, Syed Tahir Hussain, Secretary General of the Pakistan Ship Agents Association, rejected claims that large ships have stopped visiting Pakistan. He said major vessels are still docking at Karachi and Port Qasim, and feeder ships with capacities of 6,000 to 8,000 containers are sufficient for current trade volumes.
Trade ties between India and Pakistan have been suspended since 2019. Bilateral trade dropped from $2.41 billion in 2018 to just $1.2 billion in 2024, with Pakistan’s exports to India plunging from $547 million to under $0.5 million.
Despite formal trade being halted, informal trade continues. According to Global Trade Research Initiative, India unofficially exports nearly $10 billion worth of goods annually to Pakistan via alternative routes such as Dubai, Colombo, and Singapore.
These goods include pharmaceuticals, petroleum products, plastics, rubber, chemicals, vegetables, spices, tea, coffee, dairy, and grains. In return, Pakistan sends copper, glass, chemicals, sulfur, dry fruits, and seeds to India through unofficial channels.