Islamabad: India benefits more from the trade between Pakistan and India, the main reason for which is the strict tariffs imposed by the Indian government on imported goods.
This is the reason why Pakistan opposes giving India the Most Favored Nation status, while India had given Pakistan the Most Favored Nation status until the February 2019 Pulwama attacks. In 2018, Pakistan gave India $385 million. Export while Pakistan’s import from India remained 1.9 billion dollars.
In this way, India got a trade surplus of 1.5 billion dollars, the main reason of which was India’s strict tariffs, most of India’s strict trade laws are applied to textile and clothing trade.
While exports of textiles and clothes are important for Pakistan, which adversely affect Pakistan’s exports to India, this is the reason why Pakistan opposes giving India the Most Favored Nation status.
If trade with India is opened, cheap Indian goods will flood the Pakistani market, as Pakistani markets have been flooded with Chinese products since 2007 after the China-Pakistan Free Trade Agreement.
