ISLAMABAD: Balochistan exporters have urged the federal government to devise a comprehensive plan to resume trade at the Chaman border stations with Afghanistan, which has been suspended for more than three months.

The closure of border customs stations has significantly impacted exporters in Balochistan and Karachi. They are unable to fulfil export orders from Central Asian States, particularly Turkmenistan. The Chaman border provides the shortest route to Turkmenistan from Karachi and Gwadar ports.

A significant portion of Pakistan’s trade with Afghanistan is conducted through the Chaman border stations. For over three months, there have been no exports, imports, or transit cargos to Afghanistan through the Chaman border stations.

A Balochistan customs official told Dawn that the closure of the Chaman border results in a monthly revenue loss of around Rs2 billion for the government. There is also a significant setback for the earnings of those involved in cargo processing at border stations, he added.

Former FPCCI president Daroo Khan Achakzai stated that the Chaman Chamber of Commerce and Industry discussed recommendations with the federal government to declare Chaman a dry port, similar to Sialkot Dryport built by the Sialkot Chamber of Commerce and Industries. This step will engage local businesses and rapidly develop the necessary infrastructure and support systems.

He also requested that the federal government establish a free trade zone or export processing zone in Chaman with tax advantages to attract investment, create local jobs, stimulate trade operations, diversify exports, develop local industries, and attract foreign remittances.

Mr Khan said that a comprehensive working plan has already been shared with government authorities, outlining the historical background, presenting trade and investment conditions, and providing recommendations on a short and long-term basis.

The plan also considers the future potential of the Chaman region, incorporating a regional strategy involving Pakistan, Afghanistan, and the Central Asian Republics (CARs). Chaman has been a declared customs station by the Federal Board of Revenue (FBR) since 1983.

NLC is the terminal operator for this station, and the Integrated Transit Trade Management System (ITTMS) project is currently underway in Chaman. It is in the advanced stages and should be completed by December 2024.

According to the suggestion, warehousing could be considered for Chaman, playing a significant role in importing commodities from the CARs and Afghanistan and exporting them to foreign destinations via Pakistani seaports. There is a substantial opportunity to capture the market for fresh fruits and gemstones.

Published in Dawn, January 19th, 2024