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Pakistan withholds MFN status for India

Pakistan has no immediate plans to grant the Most Favored Nation (MFN) status to India. The country maintains a list of 1,209 items which are not permitted to be imported from India. As per a World Trade Organisation rule, every member of WTO is required to accord this status to other member countries.

India has already granted this status to all WTO members, including Pakistan. Under the MFN status, a WTO member country is obliged to treat other trading nations in a non-discriminatory manner, especially with regard to customs duty and other levies, but Pakistan is yet to transition fully to MFN status for India. Pakistan allows only 137 products to be exported from India through the Wagah border land route.

Bilateral trade between the two countries stood at $2.28 billion in 2016-17. India mainly exports cotton, dyes, chemicals, vegetables and iron and steel to Pakistan while it imports fruits, cement, leather, chemicals and spices. India-Pakistan relations have nosedived in recent years with no bilateral talks taking place. Ties between the two countries had been strained after terror attacks by Pakistan-based groups in 2016.

Pakistan is working out free trade agreements with different countries, especially China, and hopes to complete the second FTA with China by June 2019.

 
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