Transit trade accord will come into force from February 12

First truck from Pakistan to leave for Central Asia on Saturday.

ISLAMABAD: Pakistan has completed all arrangements for implementing the transit trade agreement with Afghanistan from February 12 and a ceremony will be held in Islamabad on Friday to mark the beginning of a new trade arrangement between the two countries.

A 13-member Afghan delegation has reached Pakistan while the deputy commerce minister of Afghanistan will arrive on Thursday.

The Afghan delegation visited the Federal Board of Revenue (FBR) on Wednesday and discussed issues related to implementation of the transit trade agreement and customs rules and procedures. The Afghan team also met officials of commerce and finance ministries.

According to an FBR official, under the new trade agreement first Pakistani truck carrying consignments will leave for Central Asia through Afghanistan on February 12. He said already approval has been given for transit route and an amended draft of customs procedures has been prepared which will be unveiled shortly.

The official said an Australian company has been hired for work on tariff rationalisation and the company has set up its office in the Planning Commission. This company in consultation with FBR and other relevant departments will give a final shape to the tariff rationalisation strategy.

There are expectations that after the implementation of the new trade agreement smuggling of goods will come down and illegal activity will also reduce, providing tax revenues to Pakistan. Pakistan is expected to earn an additional $1 billion through exports to Central Asia via Afghanistan.

Under the agreement, Afghan truck owners will deposit guarantees for transport of cargo through Pakistan and these guarantees will only be deposited in banks which have branches in both the countries.

Published in The Express Tribune, February 10^th, 2011.