Pakistan is in denial on the abragation of Article 370. It has decided to cut all bilateral trades with India and has expelled Indian envoy, and has called back its envoy from New Delhi.
Cutting of bilateral trade will not even pinch India. But it is expected have drastic effect on Pakistan as it depends on imports from India for its staples and basic household items.
This year, post Pulwama attacks, the relationship between the two countries was tarnished still more. And a constant tension was palpable. To break Pakistan’s economy India had almost stopped the import of goods from Pakistan.
Mr. Ajay Sahai, Director of the Federations of Indian Export Organisations opines that cutting off bilateral trade will have bad effect on Pakistan as India is not trade dependent on Pakistan.
Mr. Rakesh Mohan Joshi, of Indian Institute of Foreign Trade(IIFT) says Pakistan’s decision will have the effect on its own trade, because Pakistan was already having tough time after India raised the import duties by 200% on the goods from Pakistan.
According to the statistics of minister of finance, in March 2019 the imports from Pakistan were cut down by 92% and it was around 24 lakh dollars as compared to 3.4 crore dollars as in March 2018.india imports fresh fruits, cements, petroleum products, and mineral ores from Pakistan.
During the financial year 2018-19, the imports from Pakistan was reduced by 47% and it was of 5.3 crore American dollars. Pakistan too had reduced imports from India, hence Indian Export stood at 17 crore American dollars. But in due course Indian Export saw a rise of 7.4% in the same financial year.
India had given MFN– most favoured nation status to Pakistan in 1996,but Pakistan had never given India the same status, according to the clause in WTO nations, a country is bound to carry out trade without discrimination and the taxes on the goods to be applied without personal vendetta.
But after Pakistan’s repeated back stabbing and Pulwama attack, India had revoked MFN status given to Pakistan.
And we all know how the memes of Pakistan struggling get tomatoes made rounds around the world.
Mr. Ajay Sahai, explains, India’s major items of export are organic chemicals, cotton, plastics and dyes. Export of tomatoes to Pakistan had stopped long ago.
Sahai explained that such goods have a ready market in South Asia and Middle East which will enable India to divert such exports immediately without much cost.
“This is a unilateral move and a unilateral loss,” said Mohit Singla, chairman, Trade Promotion Council of India.
A Delhi-based exporter opines that trade through Dubai remains open.
However, Sahai added that shipments in the pipeline will take a hit and it is not clear whether the goods in transit or lying at the ports would be recalled in such a deteriorating situation.
From time immemorial India has been exporter of goods and have a great maritime realtion with many countries. Thanks to the foreign policies of our prime Minister, India’s has made its mark in global economy.
Meanwhile, Pakistan has taken the matter to OIC-Organisation of Islamic cooperation. OIC is having a meeting on abragation of Article 370 on 8th of August.
We are all aware how Pakistan had faced humiliation in last OIC meet. Sushma Swaraj was guest of honor and Pakistan’s threat of boycotting the OIC meet did not have any impact.
But this time the matter is also important due to the fact that Kashmir which was a Islamic majority state is now a Union Territory. How things turn out we have to wait and watch.
Initial glitches might be eminent, but it can be over come too. A country which breeds terrorism and inducts it into our land, a country which celebrates martyrdom of our soldiers, death of our beloved leader Atal ji and Sushma Swaraj, is not worthy of having any relation with us.
Let’s brace ourselves, for whatever the oncoming situation. They said “bleed India with thousand cuts” its high time that we choke them and make them bleed. That will be a true tribute to our fallen heroes.
Dr Sindhu Prashanth