Pakistan's leading daily newspaper reported on Saturday that Pakistan has formally suspended its trade relations with India in retaliation of the removal of special status to Jammu and Kashmir.
Dawn News, the country's newspaper of record, said that the decision taken by Pakistan's National Security Committee and the joint session of parliament was approved by its federal cabinet headed by Prime Minister Imran Khan. It has also suspended import of Indian goods under the Pakistan-Afghanistan transit treaty.
Two different notifications were issued after the cabinet meeting to implement the decision to suspend bilateral trade with India with immediate effect and until further orders. Notification SRO928 of 2019 says that all kind of exports to India from Pakistan have been suspended by amending the Export Policy Order 2016.
The decision to end ties may not hurt the Indian economy significantly as trade with Pakistan accounted for 0.1 percent of India's total trade in 2018-19. It is likely to hurt Pakistan more as India's exports to the country in 2018-19 were worth $2.06 while its imports were at $0.49 billion.
In February, India had withdrawn the "Most Favoured Nation" status to give to Pakistan on the backdrop of the Pulwama attack. A 200 percent import duty was also slapped on Pakistan's goods.
The value of bilateral trade fell from $164 million in February to $105 million in June.