04 September 2004	Saturday	18 Rajab 1425

ISLAMABAD, Sept 3: Pakistan and Afghanistan have decided to review "major legal, financial and administrative issues" affecting the cross-border transit trade between the two countries.

Officials told Dawn here on Friday that it had been decided to develop a comprehensive transit agreement that took into account the interests and concerns of both Pakistan and Afghanistan and the competitive situation.

The review being facilitated by the Asian Development Bank will identify major gaps and required changes in the 1965 Transit Agreement. The purpose, the officials said, was to make sure that the current two-way annul trade volume could be increased from $600 million to $1 billion preferably during 2004-05.

It was decided that both the sides would review all significant recent (last five years) assessment of trade facilitation arrangements (including port clearance and storage fees and other levies) at ports and border crossings conducted by the government of Pakistan or internal or external agencies and ascertain the validity of such assessment.

The proposed review will identify and assess the key issues on transit goods and vehicles carrying such goods. The review will include regulation of vehicle movement across the borders and harmonization of vehicle standards on dimensions, weight, exle loads, emissions, etc.

It will also be evaluated to have "one stop" pilot trade facilitation arrangements at the Port Qasim and the Karachi Port and any border crossings where similar efforts may be underway and delineate the primary causes of the successes and failures of such efforts.

In addition, further potential for document alignment will be assessed to make it responsive to the common requirements of buyers and sellers, banks, insurers, forwarders, port and customs authorities and any others that may be involved in the transit process.

Similarly, every required step will be mapped for landing, unloading, warehousing, clearing and reloading goods at the Karachi and Qasim ports and Chamman, Spin Boldak border crossing and analyzing cost for such step in time and money (including any "facilitation fees" that may be charged by unauthorized agents).

In this regard, the ministry of commerce will hold workshops and other consultations with both public and private sectors, users including operators of vehicles and owners of goods being shipped and current administrators and other operators of cross- border facilities.

Currently, Afghanistan transit traffic (export and import goods) are transported through Chamman and Torkham at Pakistan-Afghanistan border. There is a lack of proper cross-border facilities at both the border towns.

These facilities include parking bays for trucks/buses, cargo inspection sheds, weigh bridges, loading/ unloading equipment, communication/power facilities, customs/immigration counters, banking, insurance services, etc.

At present the lack of basic infrastructure at the Chamman border crossing is the main bottleneck for the transit traffic to/from Afghanistan. The problem is further aggravated because of cumbersome procedure of customs and immigration.

These problems cause delay in the delivery of goods, resulting in excessive increase in the transaction cost. To overcome the problems and reduce the transaction cost, waiting time and improved services for the traffic, it has been proposed to carry out a feasibility study for the development of cross-border facilities at Chamman.

The ADB is providing technical assistance to develop a concept and prepare plans including outline design and specification for the Cross-Border Development (CBD) facilities at Chamman.

This would specifically address to the issues relating to the identification of constraints, lack of basic infrastructure and scattered facilities along with slow or insufficient handling procedures at the border crossing.