Concern over reduced trade with CARs and Afghanistan

PESHAWAR: The Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) has expressed its deep concern over the drastic decline in trade with Afghanistan and the Central Asian Republics (CARs).

In a statement issued here on Wednesday, PAJCCI Senior Vice President Zia-ul-Haq Sarhadi blamed the Khyber government’s imposition of two percent Infrastructure Development Cess (IDS) on export cargo as the reason for the recent decline in trade between Pakistan and Afghanistan. gave Zia said that in the recent past, bilateral trade between Pakistan and Afghanistan was around $2.5 billion, which later declined to a mere minus. 700 million dollars.

Citing other reasons behind this decline in trade volume, he said it included frequent closure of Pak-Afghan border at Torkham, Temporary Entry Document (TAD), implementation of ban on Pak-Afghan trade including 100 per cent banks. Guarantee, included. 14 items on the negative list, imposition of 10 percent processing fee, restrictions at Karachi port suspended, over 300 containers of transit trade.

Zia said that due to the detention of these more than 300 containers at Karachi port, heavy financial penalties were imposed under demurrage and detention charges and a large part of Pak-Afghan trade was diverted to Bandar Abbas and Chabahar ports in Iran. . Thousands of customs clearing agents, border agents, shipping agents, transporters, laborers and other related persons are unemployed

PAJCCI said that due to the imposition of two percent IDS on exports in KP, most of the exports from Torkham border to Afghanistan have been diverted to Chaman border in Balochistan. KP has been deprived of substantial revenue.

He demanded the KP government to review its decision to impose two percent IDS on exports as thousands of people involved in Pak-Afghan trade have become unemployed.

Zai said that on the one hand, the federal government is announcing numerous incentives for the promotion of trade in the country, on the other hand, the KP government has imposed a two percent cess on exports, as a result of which trade at the Bacha Khan International Airport in Peshawar Activities are stopped. Izakhel Dry Port, Khar Lachi border post has come to a standstill.

He urged the KP government to immediately prepare a comprehensive action plan to promote regional trade and remove barriers to economic activity that have led to a decline in trade with Afghanistan and the CARs.