Pakistan keen on concluding trade agreements with Tajikistan

Published: June 17, 2016
Email
Also wants to enter trade facilitation framework with Central Asian states. PHOTO: REUTERS

Also wants to enter trade facilitation framework with Central Asian states. PHOTO: REUTERS

ISLAMABAD: Pakistan wants to conclude bilateral arrangements of transit trade and Preferential Trade Agreement (PTA) with Tajikistan this year in order to generate trade and investment activity with the Central Asian states, said Minister for Commerce Khurram Dastgir on Thursday.

During a meeting with the Republic of Tajikistan Minister for Energy Usmonzoda Usmonali Yunusali in Islamabad, Dastgir said, “Pakistan wants to enter into a large trade facilitation framework with the Central Asian states to alleviate the unwanted restrictions which bar trade and investment.”

CASA-1,000 power project: Kabul abandons share, Islamabad to receive more

He also provided the Tajik trade authorities with a draft of the proposed PTA on which further negotiations will take place.

“The CASA-1000 project will provide the basis to convert that transmission zone into an energy corridor where energy grids could flow both ways,” added Dastgir.

The Tajik minister said that the energy and road projects were extremely vital for their economy and the Tajik government was pursuing them aggressively. “Upon successful completion of the CASA-1000 project the two countries may explore the possibility of another relatively smaller electricity line through Wakhan corridor of Afghanistan into Pakistan,” he added.

South asia: China keen to enhance trade ties

Yunuali also hinted at importing oil from the Middle East and refining it in Pakistan before taking it up north to Tajikistan via a pipeline. “This would diversify the energy procurement options of Tajikistan in the future,” he said.

He was of the view that through the transit of energy, Pakistan would benefit greatly due to the transit fee.

Talking to The Express Tribune, the Ministry of Commerce Additional Secretary Robina Akhtar said that both agreements with Tajikistan had been under discussion for a long time.

“The working groups of both sides have already been established and they would finalise the draft agreements and exchange before a proposed bilateral meeting to be held in Dushanbe in October this year,” she said.

“Pakistan would have many advantages after the signing of agreements. Tajikistan is importing almost every commodity; in the long run, the two countries would also sign a transport agreement to further strengthen Pakistan’s connectivity with the Central Asian states,” she added.

“Pakistan wants to strengthen its trade and business relations with Afghanistan too, but the Afghan authorities seem least concerned; therefore, Pakistan has to explore other options.”

Pakistan’s exports to Tajikistan have risen from $6.89 million in 2012-13 to $7.42 million in 2014-15 while imports decreased from $0.44 million to $0.068 million during the same period.

Kenya’s ambassador presses for more trade

Pakistan’s major exports to Tajikistan include sugar, dairy products, medical and pharmaceutical products, construction material including cement, rice, handicrafts and meat while major imports include machinery and its parts, chemical material and products, dyeing, tanning and coloring material.

Published in The Express Tribune, June 17th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

 

Facebook Conversations

Reader Comments (6)

  • Shuaib
    Jun 17, 2016 - 3:52AM

    Pakistan can also trade with Kyrgyzstan. Unfortunately Afghanistan is an indian colony. There’s no point bothering with them. Pakistan should also pursue measures to trade with Iran.Recommend

  • Hakim Afghani
    Jun 17, 2016 - 9:23AM

    You can sign any kinda agreement you like with Tajikistan or any other countries but first you must go and ask Kabul if they will let you using Afghanistan route or not. That’s the main question which i am thinking about… From the way Kabul Gov is acting lately, soon you will not have any kinda trade with Tajikistan nor with Afghanistan. Afghanistan will use Port Chabahar and block all trade/business with Pakistani border side which means a complete halt in Tajikistan Trades, Afghan imports and export of Pakistan to any other countries via Afghanistan route.

    In case if you come up with UN Charter law, Kabul government will add 2500% tax on all your exports traveling via Afghanistan and you will not export anything and UN charter law will be useless also. Good luck with your so called Agreements.Recommend

  • Shuaib
    Jun 17, 2016 - 11:00AM

    @Hakim Afghani: We will be using the Chinese route. Also once Chahbehear is made PAKISTAN will block trade with you. Your trade will decrease by 40% and your import costs will increase by 100%. I’m waiting for that day.Recommend

  • Shuaib
    Jun 17, 2016 - 11:01AM

    @Hakim Afghani: And one last thing. Once we dump you. Remember Iran won’t be as nice as us,they will charge a transit fee. I cannot wait for Chahbwhear to be built.Recommend

  • shafiullah
    Jun 17, 2016 - 11:23AM

    Gone are the days when Pakistan used to blackmail Afg for its trade via karachi.Now its Afg turn to do the same.So its better for Pakistan to befriend Afg as India did and keep the Torkham open for the free movement of Pashtuns across the Durand line.Recommend

  • Aziz Ullah Khan yousafzae
    Sep 10, 2016 - 1:28PM

    @hakim afghani and other Afghani shafi ullah you guys are living in fools paradise.If you guys want trade through Wagha Border and ease tensions on Torkham you will have to do something for Pakistan as well.We are in demanding position not you Afghanis. As far as our trade with Tajikistan is concerned we can negociate with China easily on transit fee issue.We have options but you guys don’t have much.And Chabahar Port is very far from being materialized.So you just can’t afford to bank on Iran for that and Iran want to be a part of CPEC so Iran also wants to boost trade relations with us.So please keep your fairy tales with you.You will need them badly to share with your kids at night!Recommend

More in Business