Pakistan-Afghanistan trade reaches stalemate

Ban on some goods in transit trade, processing fee major obstacles

KARACHI:

Trade between Pakistan and Afghanistan has reached a stalemate following prohibition of transit trade in specific goods, imposition of 10% processing fee on ordinary commodities and conversion of revolving insurance guarantees into bank guarantees.

In this regard, the Special Investment Facilitation Council (SIFC) ought to step in immediately and play a constructive role to revive trade between the two neighbours. Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) President Junaid Makda made those remarks in conversation with The Express Tribune.

He emphasised that the current impasse in bilateral and transit trade between Pakistan and Afghanistan was causing a great deal of worry among businessmen of both countries.

He pointed out that the authorities and ministries concerned had been contacted since the issuance of a Statutory Regulatory Order (SRO) that restricted transit trade in some commodities and slapped a processing fee on regular goods.

Makda highlighted that unsatisfactory relations between the two countries and the cost of doing business were impeding the streamlining of trade, causing losses to the relevant stakeholders as well as both countries.

Read Pak-Afghan officials discuss transit trade issues

He called on Pakistan’s government to resolve the issues immediately to facilitate transit and bilateral trade as the deadlock was leaving a negative impact on exports of Pakistani products to Afghanistan and Central Asian states via Kabul.

In what could be termed a trade barrier, Afghanistan has increased tariff on citrus fruit, which has made it more difficult and challenging for exporters and caused delay in the delivery of perishable goods.

He pleaded to the authorities to re-evaluate the deadlock and take immediate steps to dismantle the barriers hampering the flow of goods and services between Pakistan and Afghanistan.

The PAJCCI president stressed that the existing state of affairs would prove detrimental to the economic interests of both countries and the livelihoods of stakeholders engaged in cross-border trade.

He revealed that the joint chamber had submitted a formal request to the Ministry of Commerce and had also asked the SIFC to intervene and call an urgent meeting to address the emerging challenges.

Published in The Express Tribune, January 9^th, 2024.

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