The second 'Made In Pakistan Expo Mumbai', scheduled to start Aug 31, was abruptly cancelled at the last minute by the organisers Friday.
In a terse statement, the organisers said: "We would like to inform you that due to the ongoing tension situation at the Line of Control (LOC) and on the advice from our partners 'World Trade Centre', we have 'postponed' the 2nd edition of MIPEM 2014.
Around 300 Pakistani businessmen, mostly from the garment industry, were expected to take part in the expo's second edition scheduled before the start of the festival season of Ganeshotsav, Navratri and Diwali.
The expo with the theme "Festival of Friendship", was scheduled at the World Trade Centre, Cuffe Parade, Aug 31-Sep 5, and then slated to move to New Delhi Sep 10.
The highlights of the six-day event included a fashion show, an art exhibition and a Pakistani Food Court for the Indian visitors at the expo.
India-Pakistan friendship activist Jatin Desai said that in view of the border tension, there could be repercussions from Maharashtra political parties.
"It was felt that some local parties would have protested or demonstrated during the expo. So the organisers have decided to cancel it for now," Desai told IANS.
The MIPEM second edition followed a successful maiden expo held here in April 2014.
Desai said that the fate of the second edition of the expo became uncertain after India cancelled the foreign secretary-level talks between the two countries last week.
However, hopes were raised when as recently as two days ago, around 30 Pakistani businessmen were issued visas by India to travel for the MIPEM in Mumbai.