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The decision by India to withdraw MFN status to Pakistan is intended to isolate Pakistan diplomatically and squeeze the country’s industry. Even though the low volumes of trade limit the impact that such a step can have, the stoppage of input materials such as chemicals and cotton from India will push up costs of production for the relevant Pakistani industries. It would also give a push to the illegal trade between the two countries, which takes place through border gaps and via third countries. It could also give a handle to extremist elements in Pakistan to scale up the rhetoric against India. #MFN #KashmirTerrorAttack #CSE2019 Most Favoured Nation India - Pakistan Relations WTO Agreements Visit our website for more details: https://byjus.com/free-ias-prep/ A note on our daily 'The Hindu' newspaper analysis: The Video Lecture covers the detailed analysis of the Daily Newspaper. All the important articles and editorials of 'The Hindu' are covered strictly from the UPSC/IAS examination point of view. The Video Lecture can be helpful for aspirants appearing for Bank PO/IBPS/CAT/SSC and other competitive examinations. Happy Learning! BYJU'S IAS