Does Cancelling MFN status of Pakistan hurt Pakistan? and Does revoking the MFN status hurt India as well?
India imported goods approximately worth Rs. 3500 crore from Pakistan in 2017-18 and; exported goods approximately worth Rs. 12,480 crore.
During April-October 2018 period, India imported goods approximately worth Rs. 2400 crore from Pakistan in 2017-18 and; exported goods approximately worth Rs. 11,800 crore.
This means that,
India is selling approximately 4 times more to Pakistan than buying from it (Pakistan).
This means that increasing the import duty by 200 percent will HURT Indian businessmen more than the ones in Pakistan.
Don’t assume that it is only Indian Muslims who are doing business with Pakistan. The Indian businessmen of every religion and caste have business interests in and with Pakistan. This includes Hindus, Sikhs or belonging to any other religion, sect or caste in India.
So, the removal of Most Favored Nation Status from Pakistan must be seen from this perspective as well.