Pulwama aftermath: MFN withdrawal hits Pak hard, 300 trucks stranded at Wagah border

The MFN status to Pakistan was given by India in 1996. Most Favoured Nation status is given to an international trade partner to ensure non-discriminatory trade between all partner countries of the WTO.

"After February 14, all the trading with Pakistan was stopped. At present, 200-250 trucks without goods are parked near the border after the government imposed 200 per cent Regulatory Duty (RD) on non-essential Indian imports," said Sukhbir Singh, a trader from Amritsar told ANI. 

"This move of the government of introducing higher Regulatory Duty is making difficult for traders to pay their monthly instalments of tire and trucks. The Centre must re-think on its decision. This move has also affected the food outlets situated near the border areas," said Sharan Singh, a trader from Amritsar said.

A country which provides MFN status to another country has to provide concessions, privileges, and immunity in trade agreements. It is the first clause in the General Agreement on Tariffs and Trade (GATT).

On the other hand, another trader Rajdeep Upel, was of the view that the trading activity with Pakistan should not only be closed from Punjab orders but also from the state of Jammu and Kashmir. "All trade organisations support the government's decision. We are surprised to know that land trade routes in Kashmir are still open, making the ban ineffective."

Amidst anger over Pulwama terror attack, India on Thursday announced  its decision to “stop” its share of water of three rivers Ravi, Beas and Sutlej “which used to flow to Pakistan”.

Union Water Resources Minister Nitin Gadkari said the water of these ‘Eastern rivers’ will be diverted and supplied to Jammu and Kashmir and Punjab.

As per the 1960 Indus Water Treaty governing six common rivers, India has full rights over Ravi, Beas and Sutlej rivers while Pakistan has full rights over Jhelum, Chenab and Indus.

The Union Cabinet chaired by PM today has approved implementation of Shahpurkandi Dam Project, Punjab on river Ravi.  For this, Central Assistance of Rs. 485.38 cr (for irrigation component) would be provided over five years from 2018-19 to 2022-23.

Implementation of this project would help minimising some of the water of the River Ravi which at present is going waste through the Madhopur Headworks downstream to Pakistan.

Under the Treaty, Ravi, Beas and Sutlej, all flowing through Punjab, have been described as Eastern rivers and Jhelum, Chenab and Indus, all flowing through Jammu and Kashmir, have been identified as Western rivers.

“Under the leadership of Hon'ble PM Sri @narendramodi ji, Our Govt. has decided to stop our share of water which used to flow to Pakistan. We will divert water from Eastern rivers and supply it to our people in Jammu and Kashmir and Punjab,” Gadkari tweeted.