PM Narendra Modi calls a meeting to review the Most-Favoured Nation status for Pakistan on Thursday. The PM will meet External Affairs minister Sushma Swaraj and Commerce Minister Nirmala Sitharaman.   This comes a day after the PM held a high-level meet to review the Indus Water Treaty with Pakistan.


The MFN status was accorded in 1996 as per Indias commitments as a
member of the World Trade Organisation (WTO). According to the MFN principle of the WTOs General Agreement on Tariffs and Trade (GATT) to which India is a signatory/contracting party each of the WTO member countries (including India and Pakistan in this case), should treat all the other members equally as most-favoured trading partners.

According to the WTO, though the term MFN suggests special treatment, it actually means non-discrimination. Pakistan has not extended the MFN status to India.


In the wake of the deadly attack on Indian soldiers in Uri, an incident for which India is holding Pakistan responsible, there have been calls in India for tough action against its neighbour, including the revocation of the MFN status.


India decided on Monday to suspend the meeting of the Indus Water
Commission and explore ways to use its share of water of rivers flowing into Pakistan, besides hinting that it could revive construction of the Tulbul project in Jammu & Kashmir.


"Blood and water cannot flow simultaneously," Prime Minister Narendra Modi told a meeting where the decisions designed to make Pakistan pay for the terrorist attack on the Uri Army camp were taken, extending the retaliation against the strike beyond efforts to isolate Pakistan diplomatically.