The Indus Waters Treaty has been suspended, the Attari border closed with immediate effect, and all visas issued to Pakistani nationals revoked. In a strong diplomatic signal, India has declared all Pakistani military, naval, and air advisors in Delhi as persona non grata, giving them a week to leave. The staff strength of both High Commissions will be slashed from 55 to 30. But beyond the headlines, it's the economic undercurrent that may have the longest-lasting consequences. With over 95% of Pakistan’s trade dependent on access through Karachi, speculation of a potential naval blockade is rattling regional observers. Direct and indirect India-Pakistan trade—which includes routes via third countries like the UAE—is now under intense review. As trade ties freeze and strategic chokepoints come into play, the standoff could rewire South Asia’s economic corridors, with ripple effects on regional connectivity, import-export flows, and supply chains. Please also see related news analysis