In my opinion The fact is WAR is not in the interest of both NATIONS. We have to be optimistic, MFN status has been granted to INDIA, it might be minimized the tensions between the two historic rivals as we have the example of EU and Association of South-East Asian Nations (Asean) where economic integration has been influential in the resolution of political conflicts.

But it doesn’t mean to neglect the ground reality that from the day one STRONG Pakistan is not in the interest of INDIA. No doubt India has been granted MFN status to Pakistan since 1996 but never appreciated increased number of exports. India has a huge market and resultantly, holds a significant cost advantage over its neighbors. India seeks market access to Pakistan for its finished products; it must ensure equal access / opportunity to its own market.

Pakistan’s tariffs, on the other hand, are comparatively stumpy. Its market is largely open and products are not subject to particular standards conformity. If Pakistan’s trade deficit by now to the tune of one billion dollars goes up significantly after the grant of MFN status to India, and the two countries’ bilateral relations may obnoxious. We already have the example of the United States and China. More than any other factor, the growing US trade deficit with China has had an unfavorable bang on Sino-American dealings. Consequently, though better economic relations between Islamabad and New Delhi are likely to bring the two countries closer politically, that this will happen is by no means certain.