what is meant by 200% import duty ?
what will be its effect on Pakistan??
Answers
“India has withdrawn MFN status to Pakistan after the Pulwama incident.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% with immediate effect. #Pulwama,” finance minister Arun Jaitley tweeted on Saturday.
The punitive action has followed the Pulwama terrorist attack that killed about 40 Central Reserve Police Force (CRPF) personnel on Thursday.
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India majorly exports different woven and synthetic fabrics to Pakistan. Apart from cotton products, we also export dried vegetables, software and pharma products.
Now, pressing more import duty on products imported from Pakistan like Footballs, Hockey sticks, carpets, rugs etc will compel Indian importers to either be self sustained or import the products from some place else.
We import the goods worth ₹2.5 Billion (Averaged from 1991 till Sept, 2019) from Pakistan. Even if that amount is reduced to it's very half, it has the potency to impact it's economic well being.
On the other hand, we should also be aware of the fact that Chinese government is investing heavily into Pakistan and it's getting nearer to its goal of sliding Pakistan into its, “debt trap”. So, what Pakistan will loose in its exports will be made up for by Chinese investments into it's infrastructure.