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Pulwama attack fallout: India withdraws Most Favoured Nation status to Pakistan

INS Desk by INS Desk
February 15, 2019
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Srinagar: The India on Friday withdrew Most Favoured Nation (MFN) status to Pakistan even as New Delhi directed its forces to ensure that those behind the Lethpora attack on CRPF that left at least 49 personnel dead are made to pay “heavy cost.”

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The announcement was Finance Minister Arun Jaitley after Cabinet Committee on Security chaired by Prime Minister Narendra Modi and attended among others by National Security advisor.

India had granted most favoured nation status to all WTO members, including Pakistan.

Under the MFN status, a WTO member country is obliged to treat other trading nations in a non-discriminatory manner, especially with regard to customs duty and other levies, but Pakistan is yet to transition fully to MFN status for India.

Pakistan allows only 137 products to be exported from India through the Wagah border land route.

Bilateral trade between the two countries stood at USD 2.28 billion in 2016-17.

India mainly exports cotton, dyes, chemicals, vegetables and iron and steel to Pakistan while it imports fruits, cement, leather, chemicals and spices.

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