India on Saturday hiked basic customs duty on all goods imported from Pakistan to 200 per cent in the wake of Pulwama terror attack.
"The decision comes into force with immediate effect," Finance Minister Arun Jaitley said on Saturday.
"India has withdrawn MFN status to Pakistan after the Pulwama incident.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 Jaitley tweeted.
Indian on Friday had withdrawn the Most Favoured Nation (MFN) status accorded to Pakistan a day after the dastardly terror attack on CRPF's convoy in Jammu and Kashmir's Pulwama district in which as many as 40 jawans were killed.
Finance Minister Jaitley while addressing media persons after the conclusion of Cabinet Committee on Security (CCS) meeting at 7, Lok Kalyan Marg on Friday, had announced the withdrawal of MFN status to Pakistan.
The MFN status was given by India in 1996. The MFN status is given to an international trade partner to ensure non-discriminatory trade between all partner countries of the World Trade Oganisation (WTO).
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A country which provides MFN status to another country has to provide concessions, privileges, and immunity in trade agreements. It is the first clause in the General Agreement on Tariffs and Trade (GATT). However, Pakistan never reciprocated to India's MFN gesture.
As per an estimate, bilateral trade between India and Pakistan had marginally increased to the US $ 2.41 billion in 2017-18 as compared to the US $ 2.27 billion in 2016-17. New Delhi had imported goods worth the US $ 488.5 million in 2017-18, and had exported goods to the tune of US $ 1.92 billion during the period under review.