Indian Finance Minister Arun Jaitley announced the decision withdrawing the "Most Favoured Nation" (MFN) status after the cabinet meeting.
"The Most Favoured Nation status which has been granted to Pakistan stands withdrawn. The ministry of commerce will issue the necessary communications in this regard", Arun Jaitley, country's finance minister said in a media briefing outside the Prime Minister's Office in New Delhi.
Most Favoured Nation status to Pak stands withdrawn— PIB India (@PIB_India) February 15, 2019
MEA will engage with international community to ensure that convention on international terrorism is adopted
Security forces will ensure those responsible for this heinous attack pay a heavy price: Union Minister @arunjaitley pic.twitter.com/4IX7NrUvC4
Despite frequent cross-border firing, bilateral trade between India and Pakistan has expanded. India's exports to Pakistan keep rising and reached $1924 million in 2017-18 while imports from Pakistan also grew to $488.5 million during the same period. In 2016-17, India's exports to Pakistan were $1821.8 million while imports from Pakistan were $454.5 million.
The Cabinet Committee on Security also decided that all possible diplomatic steps will be taken by the government to ensure the complete isolation of Pakistan at the international level as the government has alleged that Pakistan had a direct hand in the Pulwama terror attack.
A bomb hit a paramilitary convoy on Thursday, killing 37 officials from India's Central Reserve Police Force (CRPF) in Pulwama of Indian-controlled Kashmir. A Pakistan-based Islamist group, Jaish-e Mohammad, has claimed responsibility for the attack.
Since 2016, a total of 268 Indian security personnel and 155 civilians have lost their lives in Jammu and Kashmir, data compiled by the South Asian Terrorism Portal claims. The highest number of security personnel (95) was killed in 2018, according to the data.