Trade suspension is expected to hurt Pakistan more than India
New Delhi, Aug 8 (KNN) Suspended trade with New Delhi will hit Pakistan not India due to latter’s low dependence on exports to its neighbour, officials and traders have said.
In a new low in bilateral trade relations, Pakistan Prime Minister Imran Khan decided to suspend trade relations with India in a five-point plan, in response to India’s move to end special status for Jammu & Kashmir and split it into two union territories.
India had revoked Pakistan’s most-favoured nation (MFN) status following the Pulwama terrorist attack that killed about 40 Central Reserve Police Force (CRPF) personnel in February this year and imposed up to 200% duty on import of Pakistani goods.
The trade suspension is expected to hurt Pakistan more than India, even though India exports goods worth $2 billion (2018-19) and imports goods valued at $500 million from Pakistan.
“India is less dependent on Pakistan... India’s goods exports to Pakistan have limited profile as Pakistan has not given MFN status to India and such goods have a ready market in South Asia and the Middle East,” said FIEO President, Sharad Kumar Saraf.
Following the Pulwama terror attack, India had withdrawn the MFN status to Pakistan. Delhi also increased import duties on all items from Pakistan by 200 per cent in February.
The Pakistan NSC also decided that the country’s Independence Day on August 14 will be observed in solidarity with Kashmiris and their “just struggle for their right of self-determination’’. August 15, India’s Independence Day, will be observed as a Black Day.