Business

Traders seek extension in cash-on-counter facility

Demand implementation of currency declaration policy on borders

APP February 04, 2022

Trucks carrying goods destined for Afghanistan's second biggest city line up near Chaman, in Pakistan, waiting to cross the border. Traders say they are being taxed by the Taliban as well as Afghan government officials, and also face extortion or robbery from highway bandits. PHOTO: AFP

PESHAWAR:

Traders have urged the government to extend the cash-on-counter facility for the next six months in order to conduct bilateral trade with Afghanistan and other regional countries in a smooth manner.

In a meeting held by the Sarhad Chamber of Commerce and Industry (SCCI) Standing Committees on Dry Ports, Pakistan Railways and Land Route Exports on Thursday, they said that a currency declaration policy should be implemented at the borders in light of the State Bank of Pakistan’s (SBP) decision.

Traders were concerned that the government’s decision to increase the number of export items to Afghanistan from four to 16 in the local currency to enhance the quantum of trade with Kabul had not materialised yet.

“This is resulting in hurdles in the way of smooth mutual trade with the neighbouring country,” they said.

On the occasion, SCCI Standing Committee on Pakistan Railways and Dry Ports Chairman Ziaul Haq Sarhadi urged the government to restore Goods in Transit to Afghanistan (GITA) service and revive export cargo train from Peshawar.

He underlined that serious initiatives should be taken in order to resolve the issues of traders.

Pakistan Railways had always played a pivotal role in boosting national economy and facilitating the business community, he said.

“The closure of freight train from Peshawar is not only causing huge revenue losses for Pakistan Railways but also creating difficulties for traders,” he noted.

SCCI Standing Committee on Land Route Export Chairman Imtiaz Ahmad Ali recalled that the government, through SBP, had issued a notification regarding declaration of dollars at the border.

However, some commercial banks were reluctant to implement this decision with true letter and spirit and using delaying tactics, which was causing enormous difficulties to traders on both sides of the border, he lamented.

“It is also hurting Pakistan’s exports to the regional countries,” he added.

He suggested that a concrete coordination system should be created between the relevant government institutions – particularly the Ministry of Commerce, SBP and the Federal Board of Revenue (FBR) – in order to implement policies, orders and trade-facilitation initiatives.

Published in The Express Tribune, February 4^th, 2022.

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