In a notification issued Wednesday, the foreign ministry said, "the Federal Government is pleased to order that the Resolution 2368 (2017) be fully implemented" against Azhar.
The government directed officials to take actions "as appropriate for the implementation of sanctions" against the JeM chief, according to the notification.
Azhar is also banned from selling or purchasing arms and ammunition.
In a major diplomatic win for India, the United Nations designated Pakistan-based Azhar as a "global terrorist" after China lifted its hold on a proposal by the US, the UK and France to blacklist him.
The US, the UK and France had moved the proposal to designate Azhar as a "global terrorist" in the UN Security Council's 1267 Al Qaeda Sanctions Committee in February, just days after the deadly Pulwama terror attack carried out by the JeM in Jammu and Kashmir.