Question

where did the recent military crisis happened and what was its affect on business sector?

Answer 1

The recent military crisis happened between India and Pakistan.

The crisis has a very bad impact on business sector. The recent Pulwama attack forces India to set more strict rules for Pakistan in business trade. India has cancelled the Most Favored Nations (MFN) clause which it had granted to Pakistan many years ago. As per the WTO rules all the members of WTO have to grant MFN to all their trade partners, So India had granted MFN to Pakistan, the clause involves granting equal tariff treatment. But the recent conflict compels India to impose 200% duty on all Pakistani exports. Due to this many Pakistani small ,micro and medium enterprises suffer badly after the high increase in custom duties imposed by India . Pakistani exports could not be lifted by Indian business because of high duty. It affected the poor business people of Pakistan and its economy is also jeopardized. Pakistan looked for more foreign aid and loans from other sources. Compared to Pakistan India is in a better position but its GDP growth has slowed down. Both the countries need a strong dialog to reduce the political and economic tensions in their area.