Pakistan Will Allow The Import Of Cotton And Sugar From India:
Pakistan will allow the import of cotton and sugar from India, partially reversing a two-year-old decision to suspend all trade with India.
- The decision to cancel trade was taken by the Pakistan government in August 2019, days after the Indian government amended Article 370 and reorganized Jammu and Kashmir.
- Pakistan’s decision to suspend bilateral trade with India in August 2019 was a fallout of the constitutional changes in Jammu and Kashmir.
- However, an underlying reason for suspending trade was the 200% tariff imposed by India on Pakistani imports earlier that year after India revoked Pakistan’s Most Favoured Nation (MFN) status in the aftermath of the Pulwama terrorist attack.
- Trade between the two countries suffered greatly.
- India’s exports to Pakistan dropped nearly 60% to USD 816.62 million, and its imports fell 97% to USD 13.97 million in 2019-20.