India’s Economic Strike On Pakistan | Sanctions, Trade Ban & ADB Pressure After Terror Attack
- Updated May 6, 2025 12:22 PM IST
India is tightening the screws on Pakistan, this time with a powerful economic counter-offensive following the deadly Pahalgam terror attack. With 26 lives lost, the Narendra Modi government is going all out to cripple Pakistan financially—hitting where it hurts most. In this special report, we track how India is using both diplomacy and trade policy to isolate Pakistan globally. From pushing the Asian Development Bank to cut aid, to attempting a renewed FATF grey-listing, New Delhi is rallying international institutions against Islamabad. On the ground, India has banned all imports from Pakistan, shut down its airspace to Pakistani aircraft, and closed the crucial Attari border—the only land trade route between the two countries. Indian ports are now off-limits to Pakistani ships, marking a complete trade freeze. As Pakistan reels under heavy debt and ongoing fiscal woes, Moody’s has warned that further conflict with India could spell disaster for its economy. This package breaks down India’s strategic moves to choke Pakistan’s funding for terror, and shows how the economic fallout is already beginning to show.
