Pakistan has reportedly decided not to opt for tit for tat policy with India with respect to trade ties despite withdrawal of Most Favoured Nation (MFN) status after Pulwama attack in Held Kashmir, well informed sources told Business Recorder.
Ministry of Foreign Affairs had informed the quarters concerned that in the aftermath of terror attack on the Indian security forces in Palwama (Indian Held Kashmir) on February 14, 2019, the Government of India convened a meeting of the Cabinet Committee on Security on February 25, 2019; following the meeting, the Indian Union Minister for Finance stated that Pakistan's MFN status stands withdrawn.
Soon after withdrawal of MFN status and imposition of 200 per cent Regulatory Duty (RD) on Pakistani products by India, the Commerce Division's officials held hours' long internal meeting to prepare proposals for the government including imposition of RD of 200 per cent on non-essential Indian items. Some of the officials had proposed total ban of Indian products.
However, these proposals were to be discussed at the level of federal cabinet or National Security Council (NSC) before a final decision was made, the sources added.
On February 22, 2019, Prime Minister's Advisor on Commerce, Textile, Industries and Production and Investment, Abdul Razak Dawood told Business Recorder that Pakistan is still thinking about future line of action. "Obviously, we will not do those things which hurt our economy. We will not become emotional. If we do something, it will be after thinking like a business," he added.
The government, sources said, has not taken any reciprocal action against India on trade issues, though the decision is hurting Pakistani exports. However, some officials are suggesting the government takes some measures in response to Indian action so that these can be used as a bargaining chip when both countries commence talks on this issue.
Pakistan cement exports to India during 2017-18 amounted to 1.2 million tons and during the seven months of 2018-19 cement exports were around 648,000 Metric Tons. The sources stated that cement can be exported to other destinations like Sri Lanka and Africa, but the issue of dry dates is critical as India is a big market of this product.