January 13, 2002	Sunday	Shawwal 28, 1422

KARACHI, Jan 12: Arrival of smuggled items in Pakistan through various channels particularly under the garb of Afghan Transit Trade (ATT) have not seen any major decline despite tension and closure of Pak-Afghan border.

Instead, industry people say that the smuggling has somewhat gained momentum since the start of restructuring and rehabilitation process in Afghanistan in the third week of December.

They say that if the situation completely normalises in Afghanistan, inflow of smuggled goods into Pakistan will further pick up.

The inflow of some smuggled items into Pakistan had seen a temporary cessation ranging from 15-20 days when American air force launched massive air attacks on Afghanistan in the second week of October, but it resumed with the surrender of Taliban forces, industry people say.

Local markets are now flooded with smuggled items tea, soaps and detergents, tyres, TV sets, telephones, watches, auto parts, cosmetic items, clothes, crockery and cutlery items, shoes, garments and electrical and electronic items.

For example, smuggling of tea has stopped for just 15-20 days but it again started finding its way into the markets. “Tea smuggling has resumed,” Chairman Pakistan Tea Association (PTA), Mohammad Hanif Janoo told Dawn.

“Around 25,000-30,000 tons of tea has arrived in Pakistan last year, inflicting a loss of $50 million to the kitty,” he said adding the inflow of illegal tea will increase this year since the government has raised the import duty on tea to 30 per cent from 25 per cent in budget. Tea smuggling had dropped to 15,000 tons from 40,000 tons when import duty was slashed to 25 per cent from 45 per cent in 1998.

TYRES: The chairman, Pakistan Tyres Importers and Dealers Association (PTIDA), Aslam Awan said that only two months — October and November — saw suspension of smuggled tyres particularly of Japanese origin from Afghan border but later it resumed after Taliban surrender. Indian heavy vehicle tyres continued to arrive despite tension at the Afghan borders.

In the meantime Japanese smuggled tyres became costlier by five to ten per cent but later prices reverted to old rates due to frequent supplies from the border.

He said currently, smuggled heavy vehicle tyres maintain a market share of 60 per cent, while share of smuggled car tyres is estimated at 25 per cent despite genuine imports and local production. Pakistan’s annual imports of tyres and tubes is $60- 70 million.

Locally produced tyres are costlier as compared to smuggled tyres. However, imported tyres also cost more by 15 per cent as compared to smuggled ones. He said people prefer imported and smuggled tyres due to their quality and durability coupled with price factor.

TELEVISION: Chairman, Pakistan Electronics Dealers Association (PEMA), Sarfarazuddin said that the smuggling has restarted after a temporary stoppage. It was never halted.

He said an estimated 8,000 to 16,000 colour TV sets arrive through illegal routes every month out of total demand of