Anomalies in Afghan Transit Trade corrected

Senate panel on commerce informed about latest status of Sino-Pak FTA

ISLAMABAD:

The Senate Standing Committee on Commerce was informed on Monday that the government took measures to rectify anomalies in the Afghan Transit Trade (ATT) system, as imports by Afghanistan were six times higher than its exports.

The committee met with its chairman Zeeshan Khanzada in the chair. The meeting took up several matters including the concerns raised by the media regarding the ATT. During the meeting, the commerce secretary gave a briefing on the transit trade.

The commerce secretary explained that Afghan exports were valued at around $1 billion but its imports during the current financial year jumped to $6 billion. “This difference is huge, and we have conveyed this along with statistics to the Afghan government,” he told the committee.

“The Pakistan government has also taken measures, including the prohibition of certain items and the imposition of a 10% processing fee by the FBR [federal Board of Revenue] on sensitive goods in order to rectify anomalies in the Afghan Transit Trade system,” he added.

Besides, he continued, the government had mandated a bank guarantee for Afghan imports, aligning with the requirements imposed by Afghan authorities for the Pakistani products transiting through Afghanistan to the Central Asian Republics.

However, the secretary made it clear that essential commodities had been excluded from the new measures. “The government has made policy decisions, and the current challenge lies in effective enforcement on the ground,” he said.

A commerce ministry official informed the committee that there was no ban on meat exports to the UAE. He added that Pakistan’s trade counsellor was in contact with UAE authorities regarding a specific incident where a consignment failed to meet standards and was returned.

He said that the UAE had revised its requirements for sea transportation of fresh chilled meat from Pakistan. Additionally, a third-party audit of transport, storage, and processing facilities for meat products in Pakistan would be conducted in coordination with the Animal Quarantine Department.

Regarding the seafood exports to the UAE, the committee was informed that there was no ban on it also. The commerce secretary explained that the government was focused on the fisheries and seafood sector, with a comprehensive policy expected by January next year.

The committee was also briefed on the export potential of G1 garlic. During the meeting, representatives of G1 garlic growers highlighted its advantages, including a better shelf life and being four times larger than other local varieties.

With the government support, this product could be developed for export within 3 to 4 years, they said. The ministry expressed its commitment to supporting farmers through agricultural extension services and providing initial funding for training and capacity building.

The committee was also apprised of the latest status of the second phase of the China-Pakistan Free Trade Agreement (FTA). The commerce secretary stressed the need for addressing the anomalies and enhancing the benefits of the agreement.

“A review committee is being activated to address issues within the FTA framework,” the secretary said. He highlighted the challenges in realising the full benefits of the agreement, citing inconsistencies in policy and the need for long-term planning.