Pakistan all set to give near $2 billion blow to India in a tit for tat move

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Pakistan all set to give near $2 billion blow to India in a tit for tat move

*ISLAMABAD: Pakistan has finalised a plan to defeat India on trade front by considering the imposition of ban on imports from New Delhi in a tit-for-tat move.*

India had import 200 per cent additional duty on imports of Pakistani product that is likely to slash exports income up to $356 million to Islamabad.

New Delhi had withdrawn the Most Favoured Nation (MFN) status to Islamabad following February 14’s attack in Pulwama of Indian occupied Jammu and Kashmir, however, it had not brought tangible results to Pakistan.

Pakistan’s exports to India was mainly based on few products including dates and walnuts, sources said. The value of Indian exports stood at $1.88 million and $56 million to Pakistan, sources said.

Islamabad has started mulling to impose a ban on imports of Indian products which will stop New Delhi’s exports up to $650 million, sources said.

Sources added Pakistan will also pull back trade accommodations to India besides banning imports of the New Delhi products.

It is pertinent to mention here that bilateral trade volume between Islamabad and New Delhi is currently standing at over $1.5 million.

On February 17, Prime Minister’s Advisor on Commerce Razak Dawood had hinted strict action against India’s decision to withdraw the status of Most Favoured Nation (MFN) for Pakistan.

He had said that Islamabad would consider all available choices to retaliate the trade war tactics initiated by New Delhi.

“Pakistan may revoke concessions to India under the South Asia Preferential Trade Agreement (SAPTA) and may also take up the issue in the World Trade Organisation,” Razak Dawood said while talking to media at the office of the Board of Investment.

MFN status is accorded by one state to another in international trade under the WTO. It means that a country will treat all WTO member states equally in matters of tariffs on imports.

Economy