PESHAWAR, Aug 22: The cost of doing business with Afghanistan is likely to register considerable increase following the Afghan government’s impending move to revise upward import tariffs, business circles said on Tuesday.

Businessmen associated with export business and Afghan Transit Trade (ATT) apprehends that the increase in cost of doing business with their clients in Afghanistan would hurt exports from Pakistan.

Pakistan recorded substantial increase in its exports to Afghanistan during the last three years because of gradual increase in demand for construction material, food items, electric appliance and consumer goods since the advent of the new government in Kabul.

Afghanistan experienced a crisis like situation when people associated with the import business stopped paying duties about two months back, as their government introduced major increase in import duties to boost revenue generation.

Long queues of trucks loaded with ATT goods and items imported from Pakistan created a mess for the Afghan authorities after the importers refused to clear their goods on duties at the higher rates.

The Afghan government had raised the rate of duty from two-and-a-half per cent to ten per cent in some of the cases rendering importers to pay Rs400,000 as import duty on goods, which they previously got cleared by paying Rs100,000, said Mohammed Naveed, a businessman.

Though the Afghan government had revived the old duty structure, importers were given two months time to negotiate the issue with the ministry of finance.

The two months time is about to end during the next few days following which the new duty structure would be applicable, which, the businessmen said had not yet been announced by the Afghan government.

However, according to Mr Naveed, the new revised rates of duty would not be as exorbitant as those introduced last time, when the majority of importers were rendered unable to pay the duties.

"We have learnt that now import duties on those items, which are produced locally, would register a major jump. These products include beverages, ghee and a couple of other items," said Zia-ul-Haq, an exporter.

Business circles said that the two months timeframe would lapse on Aug 26 following which the new duty structure was expected to come in place.

Opinion

Courts & the poor
Updated 20 Jun 2021

Courts & the poor

Justice eludes those whose homes have been demolished.
No choice but to leave
20 Jun 2021

No choice but to leave

The influx of Afghan refugees into Pakistan is likely to increase again with the US withdrawal.
Cost of enforced modesty
Updated 19 Jun 2021

Cost of enforced modesty

By inviting mullahs to regulate biology textbooks the PTI government has put Pakistan in reverse gear.

Editorial

20 Jun 2021

More vaccines needed

THE vaccination rate in the country has slowed in recent days and could result in a crisis if not addressed...
20 Jun 2021

Balochistan protest

THE clashes outside the Balochistan Assembly on budget day were unfortunate. But they had been waiting to happen. ...
Silent victims
Updated 20 Jun 2021

Silent victims

THE deafening silence of political authorities, including leaders from the religious right, on the Mufti Azizur...
19 Jun 2021

NA peace — for now

AFTER a session of utter pandemonium and a distasteful war of words, normalcy finally returned to the National...
India uranium theft
Updated 19 Jun 2021

India uranium theft

REPORTS emerging from India about the theft of uranium and possible sale on the black market should be a cause for...
19 Jun 2021

KCR rigmarole

THURSDAY’S proceedings in the Supreme Court clearly demonstrated how divided the stakeholders are when it comes to...