Pakistan decision to suspend trade reflects bad economic prudence: TPCI

Pakistan's decision to suspend bilateral trade ties with India does not have any economic prudence and it would impact the neighbouring country more, the Trade Promotion Council of India (TPCI) said on Thursday.

TPCI Chairman Mohit Singla said Pakistan is already grappling with economic stress and it will further derail the USD 2.56 billion bilateral trade and touch minimal.

However, he added that there are conduits to carry on with trade through the UAE, Singapore, Dubai or Saudi Arabia.

The biggest fear is that informal trade in the form of cross-border smuggling may grow, he said.

"It is a unilateral move by Pakistan and it will hurt Pakistan more, which is already reeling under bad economic weather," Singla said.

He also said India will not lose much as Pakistan had not even granted MFN status.

Pakistan on Wednesday decided to downgrade diplomatic relations with India and suspend bilateral trade after New Delhi revoked the special status of Jammu and Kashmir.

Vikramjit Singh Sahney, president, International Chamber of Commerce (ICC) India also said that it was a "very sad" development.

He said the decision of Pakistan would further impact trade ties between the countries.

During the April-June 2019, India's exports to Pakistan stood at USD 314.7 million.

The main products being exported by India include organic chemicals; cotton; nuclear reactors, boilers; plastic products; tanning or dyeing extracts; cereals; sugar; coffee, tea; articles of iron and steel; copper and footwear.

Under the MFN pact, a WTO member country is obliged to treat the other trading nation in a non-discriminatory manner, especially with regard to customs duty and other levies.