India and Pakistan have taken the bitter fallout of the recent Pahalgam terror attack to a new front—maritime trade.
Within hours of New Delhi announcing a complete trade and shipping embargo, Islamabad struck back by banning all Indian-flagged vessels from entering its ports, intensifying an already volatile diplomatic standoff. The clampdown by both nations has effectively choked bilateral cargo movement and stalled decades-old trade routes through sea. Indian authorities alleged the involvement of Pakistan-based actors in the Pahalgam attack, which claimed 26 lives, mostly tourists. Islamabad rejected the accusations, demanding a neutral international investigation. India’s punitive steps include an outright ban on all imports from Pakistan, including those routed through third countries, a measure extending far beyond the earlier 200 percent duty imposed after the Pulwama attack in 2019. Additionally, Indian ports will no longer accommodate Pakistani vessels, while Indian ships have been instructed to avoid Pakistani waters altogether. In swift retaliation, Pakistan’s Ministry of Maritime Affairs barred all Indian-flagged carriers from docking at its ports. The move, it stated, was to “safeguard maritime sovereignty and economic interests,” signalling that exemptions would only be considered selectively. The impact on regional connectivity and sustainability goals is considerable. Maritime shipping is among the most fuel-efficient cargo modes, and rerouting vessels increases fuel consumption, delays delivery cycles, and spikes carbon emissions—an unintended but serious ecological consequence. As both countries aim to modernise their port infrastructure and meet international climate goals, the trade fallout is a regressive step in building greener, low-emission logistics systems.
This diplomatic rift also triggered secondary disruptions. India has downgraded diplomatic ties, revoked visa exemptions for Pakistani nationals under the SAARC agreement, and suspended cross-border postal and parcel services. Most significantly, it has frozen the 1960 Indus Waters Treaty, a foundational agreement that has withstood decades of conflict. Indian authorities have cited security imperatives behind the move, while Pakistan has issued warnings that tampering with its water rights would be treated as an act of war. In a further show of military preparedness, Pakistan conducted a test launch of its Abdali short-range missile, intensifying concerns over an arms escalation in South Asia. Indian defence officials called the act “needlessly provocative,” even as both nations exchanged fire across the Line of Control in Kashmir. Meanwhile, Sri Lankan authorities acted on an intelligence tip from Indian agencies and searched a flight from Chennai to Colombo, suspecting the presence of individuals linked to the Pahalgam attack. While no arrests were reported, the episode underscores how the aftershocks of this conflict are rippling through neighbouring nations. Amid rising tensions, major powers including the US, China, and the UK have appealed to both countries to maintain peace and stability in the region. The diplomatic impasse now risks undoing years of economic integration, regional trade negotiations, and sustainable development initiatives.
As the two neighbours dig in, the collateral damage to trade, diplomacy, and the environment continues to mount—with no off-ramp yet in sight.
