| 
Pak steps out of 15-yr cold, gives India Most Favoured Nation trade status
- Pakistan today decided to grant Most Favoured Nation (MFN) status to India in a move that is expected to boost bilateral trade far beyond the current $2.6 billion.
- This was a decision taken in the national interest and all stakeholders, including our military and defence institutions, were on board
- MFN status essentially provides an assurance that a country will not be discriminated against when it comes to giving market access to its goods. In effect, it brings stability and removes arbitrariness from the trade.
- Currently, India can export over 1,946 items to Pakistan including farm goods such as grain but in the absence of MFN status, around 20,000 items have to be routed through a third nation — like Dubai.
- With today’s move, Pakistan will levy normal duties on Indian imports.
- Pointing out that Pakistan cannot live in regional isolation, Awan cited China’s example, a close ally of Pakistan, and said that despite a territorial dispute with India, Beijing had been working towards strengthening its economic ties with New Delhi.
- The Pak army’s support for the MFN decision is indeed a good omen for further movement in the Indo-Pak peace process.
- A deepening crisis on its western frontiers with Afghanistan, deteriorating internal security situation, and a perilous economic condition have no doubt contributed to the Pakistan’s decision to explore new options with India.
