India to review Most Favoured Nation status given to Pakistan

India has decided to review the Most Favoured Nation, (MFN) status that it has granted to Pakistan, India's official broadcaster - All India Radio (AIR) said Tuesday.

The status will be reviewed by Indian Prime Minister Narendra Modi during a meeting that is scheduled to take place on Thursday.

"Senior officials of the Ministry of External Affairs and Commerce Ministry will attend the meeting," the broadcaster said.

India accorded MFN status to Pakistan in 1996 under WTO's General Agreement on Tariffs and Trade.

The decision comes day after Modi reviewed the Indus Waters Treaty - a water sharing agreement between India and Pakistan - during a meeting.

A newspaper report said India has decided to suspend Indus water commission talks with Pakistan.

Reports quoted Indian Prime Minister saying "blood and water cannot flow together".

Post- partition of the subcontinent water sharing was a major problem between India and Pakistan. The issue was resolved with the arbitration of World Bank (then the International Bank for Reconstruction and Development) and a settlement in the name of IWT was reached out in Sept. 19, 1960.

The agreement puts riders on how the two countries use and share water resources.

Out of the six rivers in what is called the Indus basin, India has exclusive rights over waters of the three major Eastern rivers - Ravi, Beas and Sutlej before they enter Pakistan, while as Pakistan has rights to three large Western rivers that first flow through Indian-controlled Kashmir - Indus, Jhelum and Chenab.

The treaty has withstood two wars and numerous other conflicts.

Tensions between India and Pakistan escalated because of the ongoing civilian protests in Indian-controlled Kashmir and a deadly attack last week on an Indian army base in frontier Uri town, about 109 km northwest of capital city - Srinagar. The attack killed 18 troopers and wounded over 20 others.

New Delhi blames Islamabad for fanning Kashmir protests and accuses it of sending armed militants into Indian-controlled Kashmir. However, Islamabad says it only provides moral and political support to Kashmiris.

Indian politicians and retired military officials demanded a strong reaction to Pakistan over the attack. Indian government and its top officials have been meeting continuously ever since the attack in a bid to plan its diplomatic and strategic response to the attack on Uri.

Kashmir, the Himalayan region divided between India and Pakistan, is claimed by both in full. Since their independence from Britain, the two countries have fought three wars, two exclusively over Kashmir. Endit