India hikes customs duty to 200% on all goods imported from Pakistan

After the withdrawal of the Most Favored Nation tag to Pakistan, India has now increased the customs duties for imports from Pakistan to 200%. The increase in the customs duty would drastically increase the prices of Pakistani goods in India and make exports unfeasible.

Pakistan Exports to India

Pakistan’s exports to India include fresh fruits, cement, petroleum products, bulk minerals and ores, finished leather, processed minerals, inorganic chemicals, cotton raw, spices, wool, rubber product, alcoholic beverage, medical instruments, marine goods, plastic, dyes and sports goods.
The increase in the customs duty would adversely impact Pakistan’s exports to India, which stood at USD 488.5 million (around Rs 3,482.3 crore) in 2017-18 as it would drastically increase the price of goods in India.
The increase in the customs duty is in accordance with its domestic Foreign Trade (Development And Regulation) Act which allows the government to prohibit, restrict or regulate the import or export of goods and also conform to the global trade norms which do not require any country to furnish any information disclosure for which it considers contrary to its essential security interests and allow countries any action which they consider necessary for the protection of their essential security interests.


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