TIA NEWS
In its bid to isolate Pakistan, india is now considering rethinking its decision of providing most favoured nation status to its neighbour; Indus Water treaty could also be impacted.
The Govt of India has launched an all-round offensive against Pakistan after the Uri terror attack.
While on the one hand, it has unleashed a diplomatic offensive on Pakistan, on the other, it has indicated that bilateral treaties and agreements could be reviewed, an option if exercised by India could well impose a significant economic cost on Pakistan.
The govt has also hinted withdrawing the Most Favoured Nation Status to Pakistan.
Minister of State for Finance Arjun Ram Meghwal has said that a proposal is pending with the govt in this regard since for the govt national security takes precedence over trade ties.
State of India-Pakistan ties has witnessed a sea change since India gave MFN status to Pakistan.
India granted MFN status to Pakistan 1996.
This distinction has resulted in greater import quota and low trade tariffs for Pakistan.
However, Pakistan is yet to reciprocate despite verbal assurances.
Besides MFN status, the ongoing strain in India-Pakistan ties may have an impact on the 56 year old Indus Waters Treaty.
In a cryptic message to Pakistan, the govt of India has said that there must be mutual cooperation and trust between the 2 sides for any such treaty to work.
The treaty was signed by the then Prime Minister of India Jawaharlal Nehru and Pakistan President Ayub Khan in September 1960.
The treaty is considered to be the most liberal of all water sharing treaties in modern history.
Under it, water of six rivers – Beas, Ravi, Sutlej, Indus, Chenab and Jhelum – are shared between the two countries.
Waters of the eastern rivers of Indus system- Ravi, Beas, Sutlej and their tributaries are allocated to India, while western rivers Indus, Jhelum, Chenab and their tributaries flow to Pakistan.
The treaty is a lifeline for Pakistan.
Pakistan is also running hydroelectric projects through the waters of Indus, Jhelum and Chenab that help provide electricity to its people.
Their water is also used for irrigation. Thus scrapping it would impose a prohibitive economic cost on Pakistan.
In the midst of strain in bilateral ties, the spotting of fighter planes in Pakistani airspace alone caused consternation among the people of Pakistan on Thursday night.
Pakistani journalist Hamid Mir tweeted on Thursday night that F 16 planes are flying over Islamabad.
India’s tough posture after the Uri terror attack has made Pakistan nervous.
After India upped the ante diplomatically on Pakistan, demands were raised in India for military action against Pakistan.
Prime Minister Narendra Modi too had promised that the perpetrators of the Uri attack won’t go unpunished. Days later, Defence Minister Manohar Parrikar said that PM’s vow to avenge Uri won’t remain just words.
The govt has also asserted that action would be taken after due consideration and at an appropriate time.
After the Uri attack, India has been instrumental in isolating Pakistan diplomatically.
The attack was not only condemned by several countries but Pakistan was also snubbed at the United Nations. Its Secretary General Ban Ki Moon rejected Pakistan’s dossier against India.
Since the Uri terror attack, the chorus has been growing within India for strong retaliatory action against Pakistan.
Retaliatory action by India could increase Pakistan’s troubles and impose diplomatic, economic and social costs on it.