Modi set to review Most Favoured Nation status to Pakistan

Move latest in a series of political and diplomatic offensives mounted against Pakistan by India

Indian Prime Minister Narendra Modi will chair a meeting on September 29 to review the most-favoured nation (MFN) status accorded to Pakistan.



The move comes soon after another meeting on Monday where Modi conferred with senior aides to reconfigure the Indus Waters Treaty of 1960 — a World Bank-brokered agreement that governs the distribution of water of six rivers between Pakistan and India. At the huddle, it was decided that India would strive to to use as much water as it could within the boundaries of the treaty.

According to the Associated Chambers of Commerce of India (Assocham), withdrawing MFN status from Pakistan will hardly make a dent on India as trade between both countries remains “abysmally” low. "Of India’s total merchandise trade valued at $641 billion in 2015-16, Pakistan accounts for a meagre $2.67 billion. India’s exports to the neighbouring country are valued at $2.17 billion, or 0.83%, of the total exports while imports are less than $500 million, or 0.13%, of the total inward shipments," according to The Hindustan Times.



Members of Assocham also complained that Pakistan had not reciprocated by awarding MFN status to India. “While India has granted Pakistan the MFN status, Islamabad had not responded... even with the MFN status, Pakistan’s exports to India remained less than half a billion dollars,” Assocham secretary general DS Rawat said.

The move is the latest in a series of political and diplomatic offensives mounted against Pakistan by India. Both nuclear-armed neighbours have been involved in a tense verbal and diplomatic spat after 18 Indian military personnel were killed in the recent Uri attack -- which India accuses Pakistan of orchestrating.

The assault was among the deadliest in held Kashmir and sharply ratcheted up tension between the two nuclear-armed rivals. Tension has been rising between the two arch rivals since the July 8 killing of Hizbul Mujahideen (HuM) commander Burhan Wani.  At least 100 demonstrators have been killed since then due to indiscriminate use of force against Kashmiris by Indian forces.

This article originally appeared on Hindustan Times.