India on Friday withdrew the ‘Most-Favoured Nation’ status to Pakistan following the deadly Pulwama attack and said it will take all steps to isolate the neighbouring country globally.
In a media briefing after the meeting of the Cabinet Committee on Security (CCS), finance minister Arun Jaitley said all efforts will be made to ensure that perpetrators of the attack are brought to book.
The MFN status is given to a trade partner to ensure non-discriminatory trade between two countries. India granted MFN status to Pakistan in 1996.
Talking tough, Jaitley said those aiding and abating the perpetrators will have to pay a heavy price.
He said the ministry of external affairs will launch an all out effort to isolate Pakistan and all diplomatic efforts will be launched in this regard.
“MEA will initiate all possible diplomatic steps which are to be taken to ensure complete isolation of Pakistan in the international community, he said, adding “incontrovertible evidence” is available of Pakistan’s direct hand in this gruesome terrorist attack.
The Cabinet Committee on Security meet was chaired by Prime Minister Narendra Modi to discuss the security scenario in Jammu and Kashmir in the wake of the Pulwama terror attack. It was attended by defence minister Nirmala Sithraman, finance miniser Arun Jaitley, external affairs minister Sushma Swaraj.
WON’T MAKE ANY ‘EMOTIONAL DECISION’
Pakistan also said that it will not make any “emotional decision” following India announced the withdrawal of the Most Favoured Nation (MFN) status to the country and respond to it after due deliberation.
India on Friday revoked the MFN status to Pakistan in the aftermath of Pulwama terror attack.
Advisor to Pakistan Prime Minister on Trade Abdul Razzak Dawood told reporters here that a response to Indian decision would come after due deliberation.
“India has removed us from the list of MFN nations but we will not make any emotional decision and will issue a response after making due thinking,” he said.
Withdrawal of the MFN status would significantly hit Pakistan’s exports to India, which stood at USD 488.5 million (around Rs 3,482.3 crore) in 2017-18.
But a finance ministry official told PTI that the impact of India’s decision will be marginal.
“As the trade between the two countries was just over USD 2 billion dollars and Pakistan’s exports were a fourth of it.
“So Pakistan is not going to lose much in terms of money in the short term,” the official said.
Under the MFN pact, a WTO member country is obliged to treat the other trading nation in a non-discriminatory manner, especially with regard to customs duty and other levies.
Withdrawal of the status would mean that India could impose heavy customs duties and discriminate Pakistani goods vis-a-vis similar items of other trading partners.