After withdrawing the status of Most Favorite Nation (MFN), basic custom duty has been increased on the goods exported from Pakistan to India.
India has given second blow to Pakistan after the Pulwama terror attack. After withdrawing the status of MFN status first, basic custom duty on goods exported from Pakistan has now been increased to 200 per cent. It was announced by Union Minister Arun Jaitley himself. This historic decision of India can have an impact on goods worth $ 488 million exported to India by Pakistan.
India imports $ 488 million from Pakistan in 2017-18, while exported $ 1.92 billion. Before that, the trade between the two countries was $ 2.27 billion in 2016-17. India mainly exports 137 items, including tomatoes, gobi, sugar, tea, oil cake, petroleum oils, cotton, tires and rubber. It is exported to Pakistan through Attari-Bagha border.
At the same time, India imports 264 major products such as guava, mangoes, pineapple, fiberic cotton, cyclic hydrocarbon, petroleum gas, portland cement, copper waste and scrap, cotton yarn from Pakistan. It imports from India with three routes from Pakistan Uri, Poonch and Muzaffarabad.
MFN status was given to Pakistan in 1996
After the terror attack in Pulwama in Jammu and Kashmir, the central cabinet of security affairs had withdrawn the status of the Most Favored Nation from Pakistan. This status was given to Pakistan in the year 1996. Under this, the exemption that Pakistan has to trade with India is closed.
Pakistan can raise case in WTO
Pakistan can take unilateral steps against India after the MFN status is canceled. According to media reports, it could cancel the concessions given to India under the South Asia Preferential Trade Agreement (SAPTA). Apart from this, he could also take up this matter in the WTO.
India is siege Pakistan on economic front
After the terrorist attack in Pulwama, Pakistan is continuously taking action on behalf of India for economic level. Earlier, the status of MFN and change in custom duty is now being used to circumvent Pakistan's financial crisis and to circumvent the economic crisis. India is demanding that Pakistan take strong action against terrorists detained on their own.
