‘Transit trade deal set to be ready by September’

KABUL: The landmark transit  trade agreement between Pakistan and Afghanistan is likely to go into effect next month “because things are moving at a faster pace”, a senior Afghan official said on Saturday.

Citing reasons for the delay in the signing of the agreement, Afghan Commerce Minister Anwarul Haq said that both the countries were still trying to resolve issues like taxation, restrictions on volumes and items for import.

In any case, Haq said, the process has been streamlined after the signing of a memorandum of understanding, expediting the finalisation of a draft in this regard. According to him, a document will be sent to the law ministry in Islamabad for approval next week.

“We must move forward with a sincere approach and a spirit of reciprocity,” the Afghan minister said.

Haq also vowed that “Afghanistan’s trade with India will not be at the expense of Pakistan.”

Expressing the hope that the trade agreement will give a fresh impetus to economic activities in the region, Haq said that the treaty was beneficial for both the countries because they would get better access to Central Asia and India and be able to undertake viable trade.

Talking to Pakistani reporters here, who are currently on a visit to Afghanistan, he said that the Afghan government has given Pakistani transport will be treated as “national transport” inside Afghanistan because its own cargo will also enjoy the same status on the other side of the border.

He said that Afghanistan’s trade with India “will not affect Pakistan. The war-torn country wants to have market access for the sale of its products like fruits and handicrafts in the international market”.

Haq said that currently, bilateral trade was tilted in favour of Pakistan, with a volume of around $1 billion. “Most of the imports are ordered directly from the bordering country.”

Although he did not mention the volume of illegal trade, but said that Kabul would welcome any effort by Islamabad to curb smuggling between the two countries.

Referring to the practice of sale of imported goods under the previous Afghan Transit Trade treaty, he said that strict measures have been proposed under the Pakistan-Afghanistan Transit Trade to check such activity. “Pakistan and Afghanistan will take appropriate measures so that such illegal practice is not repeated.”

Published in The Express Tribune, August 8^th, 2010.