India on Friday withdrew the Most Favoured Nation (MFN) status to Pakistan, a day after 40 CRPF personnel were killed in a terror attack in Pulwama.

"Most Favoured Nation status to Pakistan stands withdrawn," Union Finance Minister Arun Jaitley told reporters after the conclusion of the meeting of Cabinet Committee on Security, chaired by Prime Minister Narendra Modi.

In international trade, MFN treatment is synonymous with non-discriminatory trade policy as it ensures equal trading among all WTO member nations rather than exclusive trading privileges.

"Ministry of External Affairs (MEA) will initiate all possible diplomatic steps which have to be taken to ensure the complete isolation from the international community from Pakistan of which incontrovertible evidence is available of having a direct hand in this gruesome attack," Jaitley added.

Besides the Prime Minister, the CCS comprises the ministers for Home, Finance, Defence and External Affairs.

Forty CRPF personnel were killed when their convoy was targeted on the Srinagar-Jammu National Highway on Thursday.

The convoy comprised 78 buses in which around 2500 personnel were travelling from Jammu to Srinagar.

Pakistan-based terror outfit Jaish-e-Mohammad claimed responsibility for the attack, saying it was caused by a suicide bomber, according to a local news agency.

Home Minister Rajnath Singh will be visiting Srinagar later in the day to take stock of the situation. He will also hold review meetings with senior security and police officials to make a ground-level assessment and review operational actions.

Meanwhile, arrangements are also being made to airlift the mortal remains of the soldiers who lost their lives in the ghastly attack.