Trade winds: ‘K-P trade with Tajikistan hobbled by logistics’

Tajik consul general says trilateral chamber of commerce should include Afghanistan

PESHAWAR:

Honorary Consul General of Tajikistan in Khyber-Pakhtunkhwa Said Mahmood says the creation of a trilateral chamber of commerce between Pakistan, Tajikistan and Afghanistan will improve the regional economy.

In an interview with The Express Tribune, Mahmood raised several issues which stand in the way of trade between Tajikistan and Pakistan and prevent the countries from unlocking their economic potential.

Highlighting that K-P is the gateway to Pakistan for Afghanistan and Central Asian Republics (CARs), Mahmood explained there is little awareness of business opportunities.

An importer-exporter himself, Mahmood explained how the shared cultural attributes between nations such as a common religion should ease trade rather than inhibit it.

At present, trade between K-P and Tajikistan must pass through Afghanistan, with the latter reaping sizable fees in customs and transportation costs. Like Pakistan, trucks from CARs cannot pass through Afghanistan legally without transit permits.

In order to transport goods, trucks require transit permits which are available only to Afghan nationals. Goods from K-P must first be exported to Afghanistan then imported again into Tajikistan, exposing a trade barrier between nations.

“If the government pays attention to K-P and increases economic awareness, exports will increase day by day and we will be able to do more business with CARs,” Mahmood explained. “There is a huge market for Pakistani goods in Afghanistan and Tajikstan,” he said.

Mahmood also suggested the government hold regular business exhibitions to promote trade with Tajikistan.

Currently, there are no direct flights from Pakistan to Tajikistan, which adds another barrier to international trade. Flights departing from Pakistan must pass through Dubai while en route to Tajikistan.

A regular Lahore to Dushanbe flight was planned in November 2012, but never took off. Today it takes more than a day to fly to Dushanbe even though its southeastern border is merely 17 kilometres from the Durand Line.

Aside from the heavily anticipated Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000) which will shuttle electricity to Pakistan via a converter station in Peshawar by 2018 and federal talks of a Pakistan-China Economic Corridor, trade between K-P and Tajikstan—a major source of hydropower—remains difficult.

Published in The Express Tribune, April 10^th, 2015.