Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) has expressed concern over drastic reduction in trade between the two neighboring countries, Afghanistan and Pakistan. Senior Vice President of (PAJCCI), Zia-ul-Haq Sarhadi has expressed his deep concern over significant reduction in bilateral trade with Afghanistan and Central Asian Republics (CARs).
Zia-ul-Haq, who is also Executive Member Sarhad Chamber of Commerce and Industry (SCCI), had blamed enforcement of two percent Infrastructure Development Cess (IDS) by the Khyber Government on export cargo as the reason for recent dip in trade between Pakistan, Afghanistan and CARs.
Zia-ul-Haq said that in the recent past the volume of bilateral trade between Pakistan and Afghanistan was around 2.5 billion dollars which has shrunk to mere 700 million dollars.
Citing other reasons behind this plunge in trade volume, Zia-ul-Haq said it includes frequent closure of Pak-Afghan border at Torkham border, Temporary Admission Document (TAD), implementation of ban on Pak-Afghan trade including 100 percent bank guarantee, inclusion of 14 items into negative list, enforcement of 10 percent processing fees, restrictions at Karachi port causing holding of more than 300 containers of transit trade.
In a surprising twist, Afghanistan-Pakistan relations have deteriorated in all areas in past three years
Zia-ul-Haq said due to stopping of these more than 300 containers at Karachi port, huge financial penalties under the head of demurrage and detention charges were imposed and a large portion of Pak-Afghan trade was diverted to Bandar Abbas and Chabahar ports in Iran, rendering thousands of custom clearing agents, border agents, shipping agents, transporters, labourers and other associated persons as jobless.
In a surprising twist, Afghanistan-Pakistan relations have deteriorated in all areas in the past three years after a lot of optimistic chatter and exception regarding the visible signs of improvement after the Taliban return to power. In politics, and security it was clear that there are several terrorist groups operating in bordering areas that have caused trust-issues between Kabul and Islamabad. Both sides blamed each other any time when there were bomb blasts, or direct attacks on security posts, or on the army or a direct border clash. Our point of discussion is totally different from those incidents as it raises eye-brows that what could have caused both sides to not see deterioration in economic areas.
One could be the reason that due to fencing on the bordering areas which has cut off trade and disrupted families on both sides of the line. The area has been restricted on the movement of people requiring visas for entering or leaving. This could also be one of the reasons that have gravely impacted the volume of bilateral trade between the neighboring countries.
Bilateral trade between Kabul and Islamabad dropped significantly in the past recent years.
It has been reported that bilateral trade has dropped to less than a billion US dollars in the past three years. This could have damaging implications for traders and transporters in both countries, and this has also resulted into the hardship of millions of customers in both sides of the countries.
Mr. Zia-ul-Haq has furthered went on saying that due to enforcement of 2 percent IDS on export goods in KP, most of the export consignments that were transported to Afghanistan from Torkham border have been shifted to Chaman border in Balochistan, depriving KP of substantial revenue.
He demanded the KP government to review its decision regarding imposition of two percent IDS on export because the decision has rendered thousands of people associated with Pak-Afghan trade as jobless.
He said on the one hand federal government is announcing numerous incentives for promotion of trade in the country, while on the other hand KP government has imposed two percent cess on export as a result of which commercial activities at Bacha Khan airport in Peshawar, Azhakhel dry port, Kha Lachi border post have come to a standstill.
Zia also urged the KP government to forthwith chalk out a comprehensive Action Plan for promotion of regional trade and for removal of hindrances in economic activities causing reduction in trade with Afghanistan and CARs.
