Just a day after Prime Minister chaired a review meeting on the Indus Water Treaty in the backdrop of Pakistan sponsored terror killing many Indians at Uri, Government is now gearing up to review the Most Favoured Nation (MFN) status given to Pakistan
Prime Minister Narendra Modi is scheduled to chair a high level meet on Thursday to review the MFN, granted by India in 1996.
The MFN status was accorded in 1996 under World Trade Organisation’s General Agreement on Tariffs and Trade (GATT). Both India and Pakistan are signatories to this which means they have to treat each other and rest of WTO member countries as favoured trading partners.
Any change in the MFN status would have a devastation affect on Pakistan economy.
According to Industry body Assocham, out of India’s total merchandise trade of USD 641 billion in 2015-16, Pakistan accounted for a meagre USD 2.67 billion.
India’s exports to the neighbouring country worked out to USD 2.17 billion, or 0.83 per cent, of the total Indian outward shipments while imports were less than USD 500 million, or 0.13 per cent, of the total inward shipments.
The Prime Minister chaired a review meeting of 56-year-old Indus Water Treaty during which it was decided that India will “exploit to the maximum” the water of Pakistan-controlled rivers, including Jhelum, as per the water sharing pact.
Attended by National Security Advisor Ajit Doval, Foreign Secretary S Jaishankar, the Water Resources Secretary, and senior PMO officials, the meeting also noted that the meeting of Indus Water Commission can “only take place in an atmosphere free of terror”.