Buoyed by the abolition of the special status of Jammu and Kashmir, Pakistan has announced to reduce diplomatic relations with India and suspend bilateral trade. Suspending bilateral trade means that trade between the two countries will now cease. Therefore, it is important to know which country will be affected by this move of the neighboring country.
Due to suspension of bilateral trade by Pakistan, Pakistan will be the worst affected. This is because Pakistan imports many essential goods from India itself. While India is less dependent on Pakistan. This claim was made after Indian trade experts announced the reduction of diplomatic relations with Pakistan.
Imran Khan convened NSC meeting
Stung by the abolition of Article 370 and the reorganization of Jammu and Kashmir, Pakistani Prime Minister Imran Khan called a meeting of the National Security Committee (NSC) on Wednesday. The statement issued after the meeting said that it has been decided to reduce diplomatic relations with India in the NSC. Simultaneously, bilateral trade has also been suspended.
Business had fallen only after Pulwama attack
India suspended bilateral trade with Pakistan after the terrorist attack on CRPF in Pulwama, Jammu and Kashmir in February. India abolished the MFN status of the neighboring country and imposed a 200 percent import duty on its products. Due to this, in March 2019, exports from Pakistan to India had decreased by about 92 percent.