New Delhi, Feb 16 (UNI) In its continued efforts to isolate Pakistan and squeeze its already stressed economy, India on Saturday announced an unprecedented 200 per cent hike in basic customs duty on all goods exported from Pakistan to India with immediate effect.
The announcement was made by Finance Minister Arun Jaitley here.

The decision follows the government move to withdraw Most Favoured Nation (MFN) status given to Pakistan in 1990s.
The Cabinet Committee on Security presided over by Prime Minister Narendra Modi had taken the decision to withdraw the MFN status on Friday.
The 200 per cent basic customs high would impact USD 488.5 million worth of goods that Pakistan exports to India, sources said.
"India has withdrawn MFN status to Pakistan after the Pulwama incident.

Upon withdrawal, basic customs duty on all goods exported from Pakistan to India has been raised to 200 per cent with immediate effect," Mr Jaitley tweeted.
These steps are seen as attempt to build up pressure on Pakistan to act firmly against terror groups including Jaish-e-Mohammad operating from that country.

During last two days, India has been persuading extensive diplomatic offensive and trying to drive home the point to global community that the administration under new Pak Prime Minister Imran Khan needs to act against the terror groups.
"JeM has claimed responsibility for the attack.

The organization and its leadership are located in Pakistan.

LeT and other terror groups have welcomed the news of the attack.

These groups are also based in Pakistan.

Pakistan cannot claim that it is unaware of their presence and their activities," MEA spokesman Raveesh Kumar said on Friday dismissing Pakistan's statement in which it had denied of its involvement in Pulwama attack.
"There are also other audio-visual and print material linking JeM to the terrorist attack," Mr Kumar has said in reply to a question on Pakistan Foreign Secretary's briefing rejecting Pakistan's involvement in the dastardly attack that claimed 40 lives.

While the Modi government has sought to squeeze Pakistan's already under stress economy, sources point out here that more than the religious sentiment and respecting the sentiments of Sikhs - minorities in both India and Pakistan - the "opening of the Kartarpur Corridor" was seen by the Imran Khan regime as an opportunity to slowly reduce trade barriers.
Authorities in Pakistan were hopeful that the Kartarpur Corridor would "encourage the cross-border movement of people and goods".

This was a point, which was understood well by foreign policy engine room in India and traders in Indian side of Punjab state as well.
"A timely reduction in the barriers that restrict the movement of people across the Line of Control could open up new economic opportunities.

This has been in Imran Khan regime's mind," a source said.
Prime Minister Narendra Modi has understood the gravity of Imran Khan regime's economic stress and thus has been hitting out at it for not focusing on governance and depend on state sponsorship to terror.
"A country that came into existence after the partition of India, a country where terrorism is sponsored and promoted, it is a country which is on the brink of economic collapse and bankruptcy- that country has become synonymous with the word terrorism today," Mr Modi said at Yavatmal in Maharashtra on Saturday.
From time to time, MEA spokesman Raveesh Kumar too has been mocking at Pakistan leadership for neglecting their domestic matters and even has counseled Imran Khan on those lines rather than speak about 'minorities' in India.
The PML-N under Nawaz Sharif had offered several proposals to take trade relations with India to the “next higher” levels.
Even the PPP dispensation took several steps to liberalise the trade regime with India on both unilateral and bilateral basis.
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