The Ministry of Commerce has devised a four-point strategy in response to Pakistan’s trade ban in India.
India withdrew Pakistan’s most favorite nation (MFN) status by closing bilateral trade to the Pulwama terrorist incident. It also imposed a tariff of 200 percent on imports from Pakistan, in other words the closure of Pakistani exports to India.
Pakistan is Preparing a Strategy to Respond to India’s Trade War
In a tit-for-tat response, Pakistan decided to list up to 90 Indian products on the negative list. Only this step will limit India’s exports to $ 500-600 million. In addition, Pakistan will also impose a 200% regulatory tax on Indian products.
Not only that, but the government deliberated on the imposition of a ban on the export of Indian goods to Afghanistan under the Transit Trade Agreement.
According to ministry officials, the withdrawal of MFN status will not affect Pakistan. There have already been many non-tariff restrictions and a restrictive tariff regime that prevented Pakistan from having free access to the Indian market.
In fact, this trade war will hit India more, as exports to Pakistan amount to $ 1,800 million, while Pakistani exports represent $ 350 million worth of products.
The ministry will submit the strategy to the National Security Council for approval.
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