MFN- Most Favored Nation.

MFN related to most favored nation after the Pulwama aatack that killed over 40 CPRF personnel and is exploring the possibility of further economic measures to tighten the screws on its neighbour.

                                           By withdrawing MFN status india is no longer mandated to give the country the same treatment as all other members of the WTO.

                        Withdrawal of MFN status means India can now increase custom duties to any level on goods coming from Pakistan ,even exceeding bound rates .The letter act as ceilings of tarrif that countries can set , India's average bound rate for agriculture product is 113.5% and that for non farm goods is 34.5%. The MFN applied rates are 32.8% and 10.7 % respectively.

                    In the April - November period, India's imports from Pakistan amounted to $381 million compared with $489 million in FY 18 with the major items of import being fruit and nuts , gypsum , sulphur , minerals oil and cement . 

          India gave MFN status to Pakistan in 1996 but pakistan never reciprocated.