“Pakistan is no longer considering India for Most Favoured Nation (MFN) status,” stated Khuram Dastgir Khan, the country’s Minister of Commerce, in Riyadh, the capital of Saudi Arabia. This statement has been carried by the media in Riyadh and, wonder of wonders, extensively by media in Kashmir. Beyond this it has not generated much interest because Indian commercial circles are already well aware of this development.

What is infuriating in this situation is that India granted MFN status to Pakistan way back in 1995 and Pakistan has been dithering on the mandatory reciprocal facilitation ever since. On many occasions, India has threatened to withdraw the facility but has relented on the insistence of the World Bank etc.

The situation becomes even more bizarre when seen in consideration of the fact that MFN is normally sought by smaller countries in order to get such trade advantages that large countries grant only to each other – in this case the tables have turned.

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