PULWAMA ATTACK: INDIA RAISES IMPORT DUTY ON PAKISTANI GOODS BY 200%

Taking strong economic action against Pakistan following the Pulwama terror attack, India on Saturday raised the customs duty to 200 per cent on all goods imported from the neighbouring country, including fresh fruits, cement, petroleum products and mineral ore.

The decision would significantly hit Pakistan’s exports to India, which stood at $488.5 million (around ₹3,482.3 crore) in 2017-18 as it would drastically increase the prices of its goods here.

“India has withdrawn MFN (most favoured nation) status to Pakistan after the Pulwama incident.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 per cent with immediate effect,” finance minister Arun Jaitley said in a tweet.

The two main items imported from Pakistan are fruits and cement, on which the current customs duty is 30-50% and 7.5%, respectively. Slapping an import duty of 200% effectively means almost banning the imports from Pakistan, official sources said.

India on Friday revoked the MFN status to Pakistan in the aftermath of the Pulwama terror attack. The country invoked a security exception clause of the World Trade Organisation (WTO) to withdraw this status. Both the countries are member of this organisation. India can also restrict trade of certain goods and impose port-related restrictions on Pakistani goods.

THE DECISION WOULD SIGNIFICANTLY HIT PAK’S EXPORTS TO INDIA, TWO MAIN ITEMS IMPORTED FROM THERE ARE FRUITS AND CEMENT