Within 24 hours of the deadly attack on a Central Reserve Police Force convoy by an explosive-laden vehicle in Pulwama in the state of Jammu and Kashmir, the Indian government has retaliated by withdrawing the Most Favoured Nation (MFN) status from Pakistan. India’s Finance Minister Arun Jaitley announced this after attending a meeting of the Cabinet Committee on Security (CCS) headed by Prime Minister Narendra Modi earlier today.
Taking stock of the situation in Jammu and Kashmir following the attack which claimed lives of 37 CRPF troops, the CCS decided to “take diplomatic action to isolate Pakistan on an international level,” as reported in the Indian media.
SBS Punjabi spoke with the Jammu-based Pradeep Dutta, Senior Editor, Times Now. Mr Dutta has been reporting on Jammu and Kashmir for over 15 years.
By withdrawing the MFN status from Pakistan, India seeks to harm its neighbour economically. There are some Indian items, like chemicals, on which some industries of Pakistan rely. Withdrawing the MFN status from Pakistan will impact those to start with and then the rolling impact of this squeeze is expected to be felt by connected sectors.
Under the World Trade Organisation (WTO), MFN status is given to all international trade partners by member countries. Simply put, all members of WTO are required to accord MFN status to each other.
This status is given to ensure non-discriminatory trade to all member countries under WTO, which means members provide concessions, privileges and immunity in trade agreements to each other.
Despite being a member of WTO, Pakistan had not yet reciprocated India with the MFN status which was accorded by India to Pakistan in 1996. As of today, it stands withdrawn.
It is noteworthy that the attack comes barely months before India holds parliamentary elections. Pakistan-based extremist outfit, Jaish-e-Muhammad has claimed responsibility for the attack.
To listen to this interview in Punjabi, click on the player at the top of the page.
