ISLAMABAD, July 14: The import value of Afghan Transit Trade (ATT) declined by 44.5 per cent in June 2005 to Rs1.661 billion, as against Rs2.990 billion during June 2004. Official data available with Dawn showed that a decline of over 27 per cent was recorded in the import value of ATT in May 2005, over the same month last year.
With these consecutive declines during two months, the total value of ATT registered a nominal growth of 3.949 per cent and stood at Rs21.742 billion during the fiscal year 2004-05, as against Rs20.916 billion during the year 2003-04.
During the fiscal year 2003-04, the ATT value had registered a growth of 48.7 per cent, over the corresponding year. The ATT import value was projected at Rs30 billion during the fiscal year 2004-05.
Officials attributed the decrease to development cess levied by the Sindh government in August 2004. Due to this levy scores of containers held at the ports for months were not cleared by Afghan traders during the year under review. The Sindh government at the direction of the prime minister had suspended the levy till June 30, 2005.
With this fear in mind that the duty would be restored by the Sindh government after due date, the Afghan importers did not go for making contracts to import goods under the ATT, the officials added.
On the other hand, they said that the Afghan importers had started importing goods through the Bandar Abbas Port in Iran because Tehran had provided much more facilities than Pakistan regarding transit trade. Indians were also exporting goods through the same port to Afghanistan at cheaper prices, which also restricted the import under ATT through Pakistan.
There is a need that trade wizards of Pakistan should analyze in depth major legal, financial and administrative issues affecting the cross-border transit trade between the two countries.
The 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, exit loads, emissions, etc.
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 Karachi and Qasim ports and Chamman-Spin Boldak border crossing and analysing cost for such step in time and money (including any facilitation fees that may be charged by unauthorized agents). Basic facilities such as parking bays for trucks/buses, cargo inspection sheds, weigh bridges, loading/unloading equipment, communication/power facilities, customs/immigration counters, banking, insurance services, etc., should be ensured at the border exit points.
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.
