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October 22, 2008
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Wednesday
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Shawwal 22, 1429
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Swelling ATT cargoes hitting local industry
By Parvaiz Ishfaq Rana
KARACHI, Oct 21: The country’s containerised cargo imports have been registering fall against a rapid rise in imports of containerised cargo under Afghan Transit Trade (ATT) during last four fiscal years.
Business circles say that much of the ATT cargo never crosses Pak-Afghan border and around 50 per cent of these imports make their way into local market thereby destroying domestic industry.
Official import figures of containerised cargo moving out of the ports during fiscal years 2004-05 to 2007-08 revealed that where the country’s containerised cargo imports constantly declined, but ATT imports made a rapid growth.
I view of this divergent trend, which was never noticed or experienced in the past, business circles question the abnormal growth in the ATT containerised cargo imports.
According to official figures import of containerised cargo under the ATT in 2005-06 grew by 28 per cent in value at Rs14.304 billion from Rs11.179 billion in 2004-05.
Similarly, number of containers carrying ATT import cargo also increased by 11 per cent at 26,477 as against 23,913 boxes a year ago. The number of Goods Declarations (GDs) submitted for clearing these boxes also surged by 18 per cent to 13,874 from 11,424 in 2004-05.
When the ATT containerised cargo imports were compared with the country’s imports it gives a mix trend. After recording a sharp rise in 2005-06 the country’s containerised cargo during subsequent year 2006-07 declined by 50 per cent at Rs680.636 billion from Rs1,348.791 billion a year ago.
There had been fall in arrival of boxes carrying import cargo by 42 per cent in GDs submission for clearance of goods by 35 per cent over the previous year (2005-06).
Import of containerised cargo under the ATT in 2006-07 showed a fabulous growth of 93 per cent in value at Rs27.599 billion over the previous year’s Rs14.304 billion. The arrival of boxes under the ATT jumped 50 per cent at 39,802 from 26,477 in 2005-06. The GDs submitted for clearance of these boxes were also higher by 38 per cent at 19,164 as against 13,874 in 2005-06.
In 2007-08, containerised cargo imports under ATT registered a hike of 49 per cent in value at Rs41.148 billion compared to Rs27.599 billion in 2006-07. The boxes carrying ATT import cargo increased by 32 per cent at 52,684 as against 39,802 a year ago. The GDs submitted were higher by 42 per cent at 27,163 from 19,164 in 2006-07.
Against this import of country’s containerised cargo in 2007-08 rose 31 per cent in value at Rs894.062 billion from Rs680.636 billion a year ago. There was steep fall in a number of containers by 30 per cent at 228,349 from 324,662 a year ago. The GDs submitted also declined by 24 per cent at 140,400 or 24 per cent from 184,215 a year ago.
A minimum period of four to six days is required by a trailer carrying container from city ports to Quetta and Peshawar check-posts of Pak-Afghan border. But customs documents showed that many containers had come back within a day.
This indicates that most of these containers never leave for Pak-Afghan border areas and directly make their way into local markets. These documents also give prove that cross border certificate for ATT containers is also issued on the same or next day.
Business and customs agents, who requested not to be quoted, say that the ATT was badly damaging the country’s economy as a whole and industry in particular.
The condition of examining ATT cargo removed in 2005-06 by the then CBR chairman Abdullah Yousuf has raised fear that banned items such as arms and ammunitions by enemy countries could be making their way to troubled tribal areas through the ATT cargoes.
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