Pakistan has been wary of according MFN status to an "enemy nation" and sought to change the terminology to politically more neutral terms like non-discriminatory market access. Its domestic industry has also opposed saying Indian goods would swamp Pakistan once trade was fully opened up.India granted Pakistan MFN status in 1996 though trade normalisation between the two nuclear-armed neighbours is yet to take place. Bilateral trade amounts to a very modest $2.6 billion and is loaded in favour of India.Under WTO rules, each member treats all the others equally as "most-favoured" trading partners. Revoking the MFN status will hurt several sectors of the Pakistan economy and make goods expensive for consumers. Those trading with Pakistan may also be hurt if India pushes to withdraw MFN status.

Source: Times of India September 27, 2016 20:07 UTC