May 06, 2008	Tuesday	Rabi-us-Sani 29, 1429

PESHAWAR, May 5: Trade between Pakistan and Afghanistan through official routes has further declined due to the prevailing law and order situation in the Federally Administered Tribal Areas, sources said.

“The quantum of export and import between the two countries dwindled by 38.10 per cent in 2007, causing Rs5 billion loss to the national exchequer,” sources in the Federal Bureau of Revenue told Dawn.

Apart from lawlessness in the tribal areas, the sources attributed the decrease in trade between Pakistan and Afghanistan also to steps taken by the governments of Iran and India for facilitating their trade with the war-wracked country. “Trade between India and Afghanistan is increasing fast,” they said.

According to them, every year Pakistan imported huge quantity of dry and fresh fruits, carpets and scrap etc, while its exports to Afghanistan included construction materials, such as cement and iron bar and vegetable, oil, plastic goods and petroleum products.

Pakistan imported Rs1.53 billion worth luggage in 2006, which declined to Rs1.24 billion in 2007, they said, adding that the national kitty lost about Rs290 million in 2007. Likewise, Pakistan exported goods worth Rs37.40 billion to Afghanistan in 2006, but it came down to Rs32.60 billion in 2007.Exports to Afghanistan declined by 14.72 per cent, causing losses of Rs4.80 billion to the national exchequer, the sources added. They said two main routes, Ghulam Khan checkpoint in the North Waziristan Agency and trading centres in the Kurrum Agency, had been closed due to continued clashes and law and order situation.

At the moment, business activities between Pakistan and Afghanistan continue only through the Chaman border in Balochistan and Torkham in the Khyber Agency, the sources said.

Taking advantage of the situation, they said, the neighbouring Iran government had given 90 per cent concession to Afghanistan in using the Chah Bahar port, which also gave 50 per cent concession to Afghanistan traders on use of warehouses.

The trade volume between Pakistan and Afghanistan, they said, was decreasing by 15 per cent annually and there would be ‘zero’ trade between the two countries if the trend continued for the next six years.

According to the sources, Iran that exported $52 million worth items to Afghanistan till 2001 had since increased its exports to $500 million in 2007. The Iran government, they said, had also decided to expand the capacity of the Chah Bahar port by 30 per cent to further increase its exports to the country.