India withdraws ‘Most Favoured Nation’ status given to Pakistan after Pulwama attack

In the aftermath of the attack on Indian soldiers in occupied Kashmir, India withdrew on Friday the Most Favoured Nation (MFN) trade status given to Pakistan.

This decision was taken during a Cabinet Committee on Security chaired by the Indian Prime Minister Narendra Modi, Indian media reported. Indian Finance Minister Arun Jaitley said that India has revoked the MFN status given to Pakistan.

He said that the Ministry of External Affairs will take all possible diplomatic steps which are to be taken to ensure the complete isolation of Pakistan from the international community. He accused Pakistan of having a direct hand in this act, for which ‘incontrovertible evidence’ is available, Indian media quoted Jaitley.

In the World Trade Organization, this status means treating virtually everyone equally. A country which gives the MFN status to another country has to provide concessions, privilege and immunity in trade agreements.