Pulwama attack: India raises customs duty on Pak to 200 per cent

On Friday, India announced withdrawal of Most Favoured Nation (MFN) status to Pakistan.

Update: 2019-02-17 05:05 GMT
A scene of the spot after militants attacked a CRPF convoy in Goripora area of Awantipora town in Pulwama district of J&K on Thursday. At least 49 CRPF jawans were killed in the attack. (Photo: PTI)

New Delhi: Initiating a trade war with Pakistan in a bid to retaliate to Pulwama terror attack, India on Saturday hiked customs duty on goods imported from Pakistan to 200 per cent.

On Friday, India announced withdrawal of Most Favoured Nation (MFN)  status to Pakistan.

Finance Minister Arun Jaitley tweeted, "India has withdrawn MFN status to Pakistan after the Pulwama incident. Upon withdrawal, basic customs duty on all goods exported from Pakistan to India has been raised to 200% with immediate effect. #Pulwama.”

On Thursday, India lost 40 CRPF jawans in the attack carried out by the Jaish-e-Mohamad, a Pakistan-based terror group.

The MFN status is given to a trade partner to ensure non-discriminatory trade between the two nations. India had granted the status to Pakistan in 1996.

However, Islamabad did not reciprocate despite it being required to do so as a member of the World Trade Organisation.

India's decision to revoke MFN's status is seen as symbolic in crippling Pakistan's economy as it is already struggling hard financially. India mainly exports cotton, dyes, chemicals, vegetables and iron and steel to Pakistan while imports fruits, cement, leather, chemicals, and spices.

In the wake of the dastardly terror attack in Pulwama, global pressure is building on Pakistan to act against perpetrators of the attack.

Read: Worst ever terror attack in J&K since 1989: World leaders express condolences

India has urged the international community to back the naming of JeM leader Masood Azhar as a global terrorist despite China's strong and consistent attempt to block India’s bid to get JeM chief Masood Azhar declared as a designated ‘global terrorist’ at the United Nations.

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