India has increased the customs duty to 200% on all goods imported from Pakistan . This was done following withdrawal of the ‘most favoured nation’ status in the aftermath of the Pulwama terror attack.
“India has withdrawn MFN status to Pakistan after the Pulwama incident.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,” finance minister Arun Jaitely said in a tweet.
Increasing duties would significantly hit Pakistan’s exports to India, which stood at $488.5 million (around Rs 3,482.3 crore) in 2017-18.
The main items that were being imported from Pakistan to India include fresh fruits, cement, petroleum products, bulk minerals and ores and finished leather.
The government also announced its plans to initiate diplomatic steps to ensure the complete isolation of Pakistan in the international community.
Pakistan is already in the ‘grey list’ of the Financial Action Task Force (FATF), an inter-governmental body that works to stop terror financing, among other things. However, India wants it to be competely blacklisted.
The FATF blacklist is meant for countries that are deemed “non-cooperative” in the global fight against money laundering and terror financing. If the FATF blacklists Pakistan, it may lead to downgrading of the country by lenders like International Monetary Fund, World Bank, Asian Development Bank and the European Union.