ISLAMABAD: The commerce authorities from Pakistan and Afghanistan are set to meet today (Monday) to fix trade related issues.
A high-powered delegation led by Adviser to the Prime Minister on Commerce, Textile, Industry and Production, and Investment, Abdul Razak Dawood, accompanied by Pakistan’s Special Representative for Afghanistan Mohammad Sadiq, is scheduled to meet Afghan Minister of Commerce and his team at Torkham border on Monday. This was informed during the meeting of the Afghanistan Inter-Ministerial Coordination Cell (AICC), said a press release issued here.
The two delegations will visit the Torkham border to witness cross border movement of pedestrians and vehicles. The scheduled meeting will discuss various important matters related to the smooth movement of people and patients across the border, issuance of temporary admission documents, increase in timings of border crossing points, the establishment of joint border infrastructure, training of Afghan nominees for trade-related capacity building courses and smooth crossing of humanitarian assistance to Afghanistan.
The time frame for re-initiating the stalled Torkham-Jalalabad road project and the start of the luxury bus service between Peshawar-Jalalabad and Quetta-Kandahar will also be part of the discussion.
Prime Minister Imran Khan has announced an Rs5 billion package to assist Afghanistan in addressing the impending humanitarian and economic crisis. Under the package, several initiatives have been taken by AICC including the supply of lifesaving medicines and technical assistance for restoration and functioning of hospitals. In addition to the PM’s Relief Package, Pakistan is also sending relief goods and food supplies to Afghanistan on a daily basis.
Recently, a delegation of Afghan Chambers also visited Pakistan and held discussions with the business community to explore trade opportunities between the two countries.
Meanwhile, a report of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) has expressed serious concerns over the “shrinking” trade volume from $2.5 billion to $1 billion between the two countries.
“Lack of business-friendly policies, absence of proper barter trade mechanisms, ineffective investment and joint venture policies apart from unnecessary pressure and action by the FIA and FBR are the main factors that reduced the trade volume,” the report submitted to a committee on Afghanistan, headed by National Assembly Speaker Asad Qaiser, said.
It stated that in the absence of an operational banking structure in Afghanistan, banks refused to process third-party payments which hindered international transactions. In addition, imposition of duties, fiscal reforms, double taxation, and unilateral imposition of duties and taxes by either government also affected the trade.
“The trade volume decreased due to the unregulated movement of goods, the need for unnecessary documents, difficult security checks, and poor transit facilities in both countries.”
PAJCCI Chairman Zubair Motiwala said, “The trade volume between the two countries should reach $5 billion, but due to the absence of a banking system in Afghanistan, payments through third countries are not possible.” He added that the government has not yet facilitated trade in rupees with Afghanistan whereas barter trade is also not allowed.
It is, however, pertinent to mention that, at the same time, opportunities have arisen for other countries, including Iran, to expand their business activities in the Afghan market.
