Finance Minister Arun Jaitley on Saturday announced that customs duty on all goods imported from Pakistan will be hiked to 200 per cent with immediate effect.

The move comes a day after <a href="http://www.wionews.com/india-news/indias-mfn-status-to-pakistan-what-it-means-how-it-impacts-trade-197569">India scrapped MFN (Most Favoured Nation) status to Pakistan</a> in the wake of Pulwama terror attack in Jammu and Kashmir.

New Delhi has also decided to give a dossier to FATF, an international terror financing watchdog, to expose the neighbouring country's links with terrorism and seeking its blacklisting, news agency PTI reported.

According to reports, security agencies are preparing the dossier with the evidence gathered so far related to the attack carried out by Pakistan-based Jaish-e-Mohammad and the help being provided to the outfit by the country.

This will be a dossier on Pakistani agencies' links with the JeM and how the terror group is being aided by them, a security official said. The details of the terror attacks carried out by the JeM in the past will be mentioned in the document, PTI reported.

The Paris-headquartered Financial Action Task Force (FATF) will also be told through the dossier how the Pakistani agencies are providing funds to the JeM, an official told PTI.

In the next meeting of the FATF, India will also press for the blacklisting of Pakistan so that that action can be taken against the country, another official said. The FATF plenary and working group meetings will be held in Paris next week.

Earlier in the day, an <a href="http://www.wionews.com/india-news/leaders-at-all-party-meeting-strongly-condemn-dastardly-terror-act-of-14th-february-197746">all-party meeting called by Centre</a> to deliberate upon the situations arising out of Pulwama terror attack in Jammu and Kashmir passed a resolution strongly condemning the ''dastardly terror act''.&nbsp;

The meeting chaired by Home Minister Rajnath Singh released the resolution which read, "We strongly condemn the dastardly terror act of 14th February at Pulwama in J&amp;K in which lives of 40 brave jawans of CRPF were lost".

The resolution did not name Pakistan but asserted that India has been facing the menace of the cross-border terrorism which of late, it added, is being actively encouraged by forces from the neighbouring country.

Over 40 CRPF personnel were killed when a <a href="http://www.wionews.com/india-news/jem-commanders-responsible-for-pulwama-terror-attack-identified-traced-in-tral-sources-197758">Jaish-e-Mohammad (JeM) terrorist</a> rammed a vehicle carrying over massive explosives into their bus on Srinagar-Jammu national highway on Thursday at around 3.15 pm at Ladhu Modi Lethpora. The convoy consisted of 78 buses in which around 2,500 CRPF personnel were travelling from Jammu to Srinagar.

The Central government has also stepped up <a href="http://www.wionews.com/india-news/pulwama-terror-attack-india-continues-its-diplomatic-campaign-for-second-day-briefs-gulf-asean-and-african-envoys-197780">diplomatic efforts to mount pressure on the Government of Pakistan</a> to take action against those who have been indulging in exporting terror to India.

(With inputs from PTI)

Finance Minister Arun Jaitley on Saturday announced that customs duty on all goods imported from Pakistan will be hiked to 200 per cent with immediate effect. The move comes a day after India scrapped MFN (Most Favoured Nation) status to Pakistan in the wake of Pulwama terror attack in Jammu and Kashmir.

Finance Minister Arun Jaitley on Saturday announced that customs duty on all goods imported from Pakistan will be hiked to 200 per cent with immediate effect. The move comes a day after India scrapped MFN (Most Favoured Nation) status to Pakistan in the wake of Pulwama terror attack in Jammu and Kashmir. New Delhi has also decided to give a dossier to FATF, an international terror financing watchdog, to expose the neighbouring country's links with terrorism and seeking its blacklisting, news agency PTI reported. According to reports, security agencies are preparing the dossier with the evidence gathered so far related to the attack carried out by Pakistan-based Jaish-e-Mohammad and the help being provided to the outfit by the country. This will be a dossier on Pakistani agencies' links with the JeM and how the terror group is being aided by them, a security official said. The details of the terror attacks carried out by the JeM in the past will be mentioned in the document, PTI reported. The Paris-headquartered Financial Action Task Force (FATF) will also be told through the dossier how the Pakistani agencies are providing funds to the JeM, an official told PTI. In the next meeting of the FATF, India will also press for the blacklisting of Pakistan so that that action can be taken against the country, another official said. The FATF plenary and working group meetings will be held in Paris next week. Earlier in the day, an all-party meeting called by Centre to deliberate upon the situations arising out of Pulwama terror attack in Jammu and Kashmir passed a resolution strongly condemning the ''dastardly terror act''. The meeting chaired by Home Minister Rajnath Singh released the resolution which read, "We strongly condemn the dastardly terror act of 14th February at Pulwama in J&K in which lives of 40 brave jawans of CRPF were lost". The resolution did not name Pakistan but asserted that India has been facing the menace of the cross-border terrorism which of late, it added, is being actively encouraged by forces from the neighbouring country. Over 40 CRPF personnel were killed when a Jaish-e-Mohammad (JeM) terrorist rammed a vehicle carrying over massive explosives into their bus on Srinagar-Jammu national highway on Thursday at around 3.15 pm at Ladhu Modi Lethpora. The convoy consisted of 78 buses in which around 2,500 CRPF personnel were travelling from Jammu to Srinagar. The Central government has also stepped up diplomatic efforts to mount pressure on the Government of Pakistan to take action against those who have been indulging in exporting terror to India. (With inputs from PTI)

Pulwama attack: After scrapping MNF status, Government hikes customs duty on all Pak imports to 200%

In the wake of the Pulwama attack, the <a href="http://www.wionews.com/world/united-states-calls-on-pakistan-to-immediately-end-support-to-all-terrorist-groups-white-house-197523">MFN status to Pakistan</a> has been revoked by India signifying a dip in trade relations between the two countries.

India had granted <a href="http://www.wionews.com/india-news/india-withdraws-most-favoured-nation-status-accorded-to-pakistan-after-pulwama-attack-197540">Most Favoured Nation status</a>(MFN) to Pakistan back in 1996, however, Pakistan in all these years has refused to grant reciprocal status to India.&nbsp;

Pakistan still maintains 1,209 items on its list which it does not allow India to import, allowing just 137 products to cross the Wagah border through the land route.

According to the World Trade Organization(WTO) rules, every member has to accord the status to the other. In November 2011, the Pakistan cabinet had unanimously decided to grant India MFN trade status but it soon backtracked.

Pakistani officials complained that Indian goods flowed into the country hindering the flow of Pakistani goods into India. In 2009-2010, of the $1.4 billion in trade, exports to Pakistan stood at $1.2 billion while Pakistan exports to India totalled $268 million, according to official data, a fact disliked by Pakistani officials.

In 2014, during Nawaz Sharif's government, there was again a buzz on granting India MFN status which could cool political temperatures. The development occurred after both countries decided to have bilateral trade top $6 billion in 2014 but it has remained far off the mark.

The MFN status was accorded under WTO's General Agreement on Tariffs and Trade (GATT). Both India and Pakistan are signatories and are members of the World Trade Organisation (WTO), which means they have to treat each other and the other WTO member countries as favoured trading partners in terms of imposing customs duties on goods.

Removal of this status means India can now enhance customs duties to any level on goods coming from Pakistan, a trade expert said.

Total India-Pakistan trade has increased marginally to $2.41 billion in 2017-18 as against $2.27 billion in 2016-17. India imported goods worth $488.5 million in 2017-18 and exported goods worth $1.92 billion in that fiscal.

Under MFN pact, a WTO member country is obliged to treat the other trading nation in a non-discriminatory manner, especially with regard to customs duty and other levies. 
India mainly exports cotton, dyes, chemicals, vegetables and iron and steel; while it imports fruits, cement, leather, chemicals and spices.

Last year, Pakistan's Commerce and Industry minister Abdul Razak Dawood had said the country had "no plans" to grant India MFN status although he added that Pakistan was working out free trade agreements(FTAs) with various countries, especially China.

Pakistan had signed a free trade agreement(FTA) with China in 2005 which came into effect in 2007. Despite&nbsp;China Pakistan Free Trade Agreement (CPFTA), Pakistan's trade deficit with China had grown from $4.1 billion Bn in 2012 to $12.1 billion in 2016.

According to a report by Pakistan's business council, "Pakistan in 2016 managed to utilize just four per cent of the tariff line on which concessions were offered under the CPFTA. China, on the other hand, utilised 60 per cent of the tariff line concessions."

In the wake of the Pulwama attack, the MFN status to Pakistan has been revoked by India signifying a dip in trade relations between the two countries. India had granted Most Favoured Nation status(MFN) to Pakistan back in 1996, however, Pakistan in all these years has refused to grant reciprocal status to India.

In the wake of the Pulwama attack, the MFN status to Pakistan has been revoked by India signifying a dip in trade relations between the two countries. India had granted Most Favoured Nation status(MFN) to Pakistan back in 1996, however, Pakistan in all these years has refused to grant reciprocal status to India. Pakistan still maintains 1,209 items on its list which it does not allow India to import, allowing just 137 products to cross the Wagah border through the land route. According to the World Trade Organization(WTO) rules, every member has to accord the status to the other. In November 2011, the Pakistan cabinet had unanimously decided to grant India MFN trade status but it soon backtracked. Pakistani officials complained that Indian goods flowed into the country hindering the flow of Pakistani goods into India. In 2009-2010, of the $1.4 billion in trade, exports to Pakistan stood at $1.2 billion while Pakistan exports to India totalled $268 million, according to official data, a fact disliked by Pakistani officials. In 2014, during Nawaz Sharif's government, there was again a buzz on granting India MFN status which could cool political temperatures. The development occurred after both countries decided to have bilateral trade top $6 billion in 2014 but it has remained far off the mark. The MFN status was accorded under WTO's General Agreement on Tariffs and Trade (GATT). Both India and Pakistan are signatories and are members of the World Trade Organisation (WTO), which means they have to treat each other and the other WTO member countries as favoured trading partners in terms of imposing customs duties on goods. Removal of this status means India can now enhance customs duties to any level on goods coming from Pakistan, a trade expert said. Total India-Pakistan trade has increased marginally to $2.41 billion in 2017-18 as against $2.27 billion in 2016-17. India imported goods worth $488.5 million in 2017-18 and exported goods worth $1.92 billion in that fiscal. Under MFN pact, a WTO member country is obliged to treat the other trading nation in a non-discriminatory manner, especially with regard to customs duty and other levies. India mainly exports cotton, dyes, chemicals, vegetables and iron and steel; while it imports fruits, cement, leather, chemicals and spices. Last year, Pakistan's Commerce and Industry minister Abdul Razak Dawood had said the country had "no plans" to grant India MFN status although he added that Pakistan was working out free trade agreements(FTAs) with various countries, especially China. Pakistan had signed a free trade agreement(FTA) with China in 2005 which came into effect in 2007. Despite China Pakistan Free Trade Agreement (CPFTA), Pakistan's trade deficit with China had grown from $4.1 billion Bn in 2012 to $12.1 billion in 2016. According to a report by Pakistan's business council, "Pakistan in 2016 managed to utilize just four per cent of the tariff line on which concessions were offered under the CPFTA. China, on the other hand, utilised 60 per cent of the tariff line concessions."

India withdraws MFN status to Pakistan: What it means & how it impacts trade

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Pulwama attack: After scrapping MNF status, Government hikes customs duty on all Pak imports to 200%

India withdraws MFN status to Pakistan: What it means & how it impacts trade