Pakistan’s decision to suspend bilateral trade ties with India would hit the neighbouring country more as they import essential items, according to experts. India’s exports to Pakistan have already dropped significantly due to strained trade relations after the Pulwama terror attack in February this year. India’s export basket for Pakistan has a limited portfolio as Pakistan has not given ‘most favoured nation’ status to New Delhi and such goods have ready market in South Asia and the Middle East. Professor at Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said that Pakistan’s decision is going to impact its businesses. Pakistan on Wednesday, 7 August, decided to downgrade diplomatic relations with India and suspend bilateral trade after New Delhi revoked the special status of Jammu and Kashmir. The government on Monday abolished Article 370 of the Constitution that gave special status to Jammu and Kashmir and bifurcated the state into two Union Territories, Jammu and Kashmir, and Ladakh. Trade relations between India and Pakistan were already strained following the Pulwama terror attack as India imposed 200 per cent customs duty on all goods imported from the neighbouring nation. Imports from Pakistan declined by 92 percent to 2.84 million dollars in March this year compared to 34.61 million dollars in March 2018, according to the commerce ministry data. During January-March period of 2018-19 fiscal, imports from Pakistan declined by 47 percent to 53.65 million dollars.
