Why in News?

Just over 10 days after the Pahalgam terror attack that killed 26 people, India has intensified its diplomatic pressure on Pakistan.

Key steps include curbing water flow through the Baglihar dam, halting imports from Pakistan, banning Pakistani ships from docking, and suspending all mail and parcel exchanges.

What’s in Today’s Article?

• India Restricts Water Flow from Baglihar Dam
• India Imposes Total Trade Ban on Pakistan Following Pahalgam Terror Attack
• India Bans Maritime Link with Pakistan Following Pahalgam Attack
• India Suspends Postal Services with Pakistan

India Restricts Water Flow from Baglihar Dam

• India has temporarily restricted the flow of water from the Baglihar dam on the Chenab River, targeting Pakistan’s Punjab region.
  • The Chenab River plays a critical role in irrigating Pakistani farmlands.
• The move is intended as a short-term punitive measure in response to the recent Pahalgam terror attack.
  • Even a brief choke in water flow serves as a signal that India is prepared to take coercive steps.
• Treaty-Compliant Yet Strategic
  • Though the Baglihar dam is a run-of-the-river hydroelectric project permitted under the Indus Water Treaty, India’s action highlights its ability to use treaty-compliant infrastructure strategically in response to cross-border terrorism.
• Possible Action on Kishanganga Dam
  • As per analysts, similar measures could soon be implemented at the Kishanganga dam on the Jhelum River, indicating a broader strategy to pressure Pakistan using water resources.

India Imposes Total Trade Ban on Pakistan Following Pahalgam Terror Attack

• In response to the April 22 Pahalgam terror attack, India has banned all direct and indirect imports from Pakistan with immediate effect.
• The move is aimed at safeguarding national security and public policy.
• With this, India-Pakistan trade, once valued at over $2.4 billion annually, has now come to a complete standstill.
• Foreign Trade Policy Updated
  • A new provision has been inserted in the Foreign Trade Policy (FTP) 2023, explicitly prohibiting the import or transit of any goods originating in or exported from Pakistan.
  • Exceptions, if any, will require special government approval.
• Trade Already at a Historic Low
  • Due to strained bilateral ties, trade between the two nations was already minimal.
  • In April-January 2024–25, India’s exports to Pakistan stood at $447.65 million, while imports were just $0.42 million.
    • The two-way trade had significantly declined post the 2019 Pulwama attack.
• India’s Major Exports to Pakistan
• Exports included pharmaceutical products ($110.06 million), organic chemicals ($129.55 million), auto components, sugar, petroleum products, and food items like cereals and spices.
• Previous Trade Measures & MFN Status Withdrawal
  • Post-Pulwama, India had imposed a 200% import duty on Pakistani goods and revoked Pakistan’s Most Favoured Nation (MFN) status under WTO rules.
  • Pakistan never reciprocated India’s 1996 MFN gesture and retracted its 2012 NDMA promise due to domestic opposition.
• Pakistan’s Countermove
  • In retaliation, Pakistan has also suspended all trade with India, including indirect trade via third countries.

India Bans Maritime Link with Pakistan Following Pahalgam Attack

• India has banned all Pakistani-flagged vessels from docking at Indian ports. The ban is effective immediately and will remain in force until further notice.
• Indian Vessels Also Restricted from Pakistani Ports
  • The Directorate General of Shipping (DGS) has also prohibited Indian-flagged ships from visiting Pakistani ports.
  • It invoked Section 411 of the Merchant Shipping Act, 1958, in the interest of national security and public infrastructure safety.
• Limited Scope, Exemptions Possible
  • The order applies only to ships flying the Indian or Pakistani flags.
  • Vessels flagged under third countries are not covered by the directive.
  • Exemptions may be considered on a case-by-case basis, especially for ships already enroute.
• Minimal Impact Due to Low Trade Volume
  • Maritime trade between the two countries has been negligible, with only about 14 ship visits in 2024.
  • Most trade has traditionally occurred via land borders or through third countries. Hence, the ban is expected to have limited economic impact.

India Suspends Postal Services with Pakistan

• India has suspended the exchange of all categories of mail and parcels with Pakistan via both air and surface routes.
• The directive was issued by the Department of Posts under the Ministry of Communication, effectively halting all postal communication between the two countries.