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Mfn Status to India
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| | Pakistan - Articles | | Print | | Bookmark | | Email | | Post Comment | | #3489, 18 November 2011 | India-Pakistan and the ‘Most Favoured Nation’: Why, why not and will it?Anureet Rai and Aryaman Bhatnagar
Research Interns, IPCS email: anureet.rai@gmail.com, aryaman.bhatnagar@gmail.com The status of Pakistan’s grant of ‘Most Favoured Nation’ (MFN) to India is in doubt. While the foreign ministry has given assurances that the decision would be implemented, an actual decision is yet to be taken. This raises several questions. Why did Pakistan agree to grant India the MFN status? What has led to the delay in the implementation of this decision? Will this decision ever be implemented? Pakistan’s decision to grant MFN to India is motivated by both economic and political factors. Given the asymmetric responsibilities India is willing to shoulder, this is a win-win situation for Pakistan. According to the Pakistan Business Council, bilateral trade is said to double over the next three years if this deal goes through.

Moreover, it will also help bring US$10 billion worth of illegal trade
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