The Pakistan Government is reportedly preparing to further liberalise trade regime with India and also grant Most Favored Nation (MFN) status to its neighbour.
Some believe that MFN status and opening up trade with India will be a death knell for Pakistan economy.
According to the Express Tribune, the speculated reasons behind this perception are likely to be duty free imports from a special status country, hurting the domestic sector by opening up the local market to Indian goods, balance of trade suspected to weigh heavily in favour of India, risk of a conflict because of delicate relationship between India and Pakistan and risk of infiltration.
However, MFN status only suggests that for trade purposes a WTO member country will not be discriminated with other member countries.
Moreover, it is expected that cheaper imports will mean lower costs for our industries in the long run which is going to benefit the end consumer and the government in the form of revenues, the report added.
