After the Pulwama attack, the economic relationship of the countries Pakistan and India increased. On Saturday report India raised the tax up to 200% on all goods that it imports from Pakistan.
This decision is very beneficial for Pakistan when it exports goods to neighboring countries, which stood up in 2017-18 at $488.5 million. The decision will increase in the price of imported products, cement, fruits, minerals, and petroleum goods. This development comes when India drawback its most favored Nation status for Pakistan.
The Arun Jaitley Finance minister said in his tweet that “After the Pulwama incident India reserved MFN status to Pakistan. According to withdraw, basic taxes on all the goods that India imports from Pakistan have raised to 200% “.
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Basic Imports of India from Pakistan:
Pakistan export two main things into India fresh fruits and cement, on which the taxes from the country is 30-50- % and 7.5% respectively. According to the official sources, the increase in the taxes up to 200 % means there is no import from Pakistan. India can restrict trade on Pakistani goods.
The things that India imports from Pakistan are cement, fresh fruits, bulk minerals, petroleum things, finished leather, ores, inorganic chemicals, spices, wool, cotton raw, medical instrument, rubber product, marine goods, plastic, sports goods, dyes, and alcoholic beverages.
Trade rates of India –Pakistan in 2016-2018
In 2016-17 the trade of India-Pakistan is about $2.27 billion which increased in 2017-18 upto $2.41 billion. India imported goods in 2018-18 are $488.5, and exported goods were $1.92 billion. During April-October 2018-19 the imports of India to Pakistan were $338.66 billion while the exports $1.18 billion. The things that India exports are raw cotton, chemicals, cotton yarn, plastics, and dyes to Pakistan.
Pakistan will not react to MFN move:
Pakistan does not respond against this action. In this response, he said that it will not respond on Modi government decision of its withdrawing of MFN status and would take action with great care.
Abdul Razak Dawood on the advice of Imran Khan said that “ we will not overreact in this decision.We have three option including bilateral under South Asian free trade area and unilateral and multilateral under world trade organization. We would take action with complete safety and care.”
During a joint news conference, he addressed by the Harron Shareef chairman of the board of investment that the Prime minister help was responding against this question. When he asked the question than Dawood said that Indian exports are no more than a billion dollar while Pakistan export to India is more than a $300 million per annum.