On thursday, 14th Feb 40 soldiers were killed in a terrorist attack in Lehpora, Pulwama, Jammu Kashmir. A CRPF convoy led to a terrorist attack in which 40 soldiers lost their lives. The Cabinet Committee on Security, under the leadership of PM Modi, held a key meeting of the Cabinet Committee on Security.
After the meeting and about 20 hours after the attack, the Modi Government took an important decision against Pakistan. After the terror attack, India has snatched the status of Most Favored Nation (MFN) from Pakistan. Let us state that India gave this status to Pakistan in the year 1996.
Not only that, India has decided to isolate Pakistan in the International Community. According to the information, National Security Adviser Ajit Doval, along with Defense Minister, Home Minister, Finance Minister, Foreign Minister, also attended the important meeting of the Cabinet Committee. Do you know the list of ranks in Indian Army?
What is the meaning of Most favored NATION?
Most favored nation means the facilities available to a country in business. Any country that receives this status is provided with all the facilities related to trade. Not only this, the countries which receive this status have higher relations with other countries. As a member of the World Trade Organization (WTO), each country has to provide MFN status to each other. Therefore, India gave this status to Pakistan in 1996.
Due to this status, Pakistan received profits of more import quotas and fewer trade tariffs. The country which receives this status is assured that it will not face any kind of problem in future business.
If we explain in simple words, then Pakistan knew that India could not harm the economic front in any situation. Under MFN, India was providing all facilities to Pakistan which is given to other countries. Under MFN, there is a special discount for import and export between the two countries. The country which receives this status also does the lowest trade on import duty.
How much loss Pakistan will face?
According to experts, it will not hurt much after snatching this status from Pak. During the year 2017-18, the trade between India and Pakistan was $ 2.41217 billion or 17 thousand crore rupees. In this, the share of exports from India is 1.924 billion dollars, whereas Pak is only importing $ 0.488 billion. In the year 2016-17, India’s exports to Pakistan stood at 1.8218 billion, while only $ 0.454 billion was exported from Pakistan.
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