In a significant policy move, the Government of India has issued a new directive under the Foreign Trade Policy (FTP) 2023, aimed at strengthening national security and public policy interests. With immediate effect, all direct or indirect import or transit of goods originating in or exported from Pakistan is now prohibited. This directive is formalized through the insertion of a new Para 2.20A in the FTP 2023.
Legal Basis
The prohibition has been notified under the authority granted by:
- Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, and
- Paragraphs 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2023.
This action demonstrates the Central Government’s strategic use of its legal powers to regulate international trade in alignment with national interests.
Details of Para 2.20A – FTP 2023
The newly inserted Para 2.20A reads:
“Prohibition on Import from Pakistan
Direct or indirect import or transit of all goods originating in or exported from Pakistan, whether or not freely importable or otherwise permitted, shall be prohibited with immediate effect, until further orders. This restriction is imposed in the interest of national security and public policy. Any exception to this prohibition shall require prior approval of the Government of India.”
Key Highlights
- Scope of Prohibition: Applies to all goods, regardless of their classification in the import policy (freely importable or restricted).
- Mode of Trade: Covers both direct and indirect import or transit routes.
- Effective Immediately: The prohibition comes into force with immediate effect and remains until further notice.
- Exceptions: Any exception to this blanket restriction must receive prior approval from the Government of India.
- Reason Cited: The restriction is based on concerns related to national security and public policy.
Implications for Traders and Businesses
- Ongoing Transactions: Importers should immediately halt or re-evaluate any pending or in-transit consignments involving Pakistani origin.
- Supply Chain Review: Businesses dependent on raw materials or finished goods from Pakistan must explore alternative sourcing channels.
- Compliance Risk: Non-compliance with this restriction may lead to penalties, seizures, or denial of customs clearance.
Conclusion
The insertion of Para 2.20A into FTP 2023 underscores India’s firm stance on trade in alignment with its strategic and security interests. Importers and exporters must stay updated on such developments and ensure strict compliance to avoid any regulatory fallout.
Notification Reference: DGFT
Notification No. 06/2025-26
02/05/2025