PESHAWAR: Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) has expressed concern over drastic reduction in trade with Afghanistan and Central Asian Republics (CARs).
PAJCCI senior vice president Ziaul Haq Sarhadi said in a statement here on Wednesday that enforcement of two per cent infrastructure development cess (IDC) by the provincial government on export cargo was main reason for the recent dip in trade volume between Pakistan and Afghanistan.
“In recent past, the volume of bilateral trade between Pakistan and Afghanistan was around $2.5 billion, which has shrunk to $700 million. Other reasons behind this plunge in trade volume include frequent closure of Pak-Afghan border at Torkham, temporary admission document (TAD), implementation of ban on Pak-Afghan trade including 100 per cent bank guarantee, inclusion of 14 items into negative list, enforcement of 10 per cent processing fee and restrictions at Karachi port that cause holding of more than 300 containers of transit trade,” he said.
Mr Sarhadi said that a large portion of Pak-Afghan trade was diverted to Bandar Abbas and Chabahar ports in Iran, rendering thousands of customs clearing agents, border agents, shipping agents, transporters, labourers and other persons jobless.
Says thousands of customs clearing agents, transporters and labourers being rendered jobless
He said that owing to enforcement of two per cent IDC on export goods in KP, most of consignments that were transported to Afghanistan from Torkham were shifted to Chaman border in Balochistan.
Mr Sarhadi, who is also executive member of Sarhad Chamber of Commerce and Industry (SCCI), demanded of the provincial government to review its decision regarding imposition of two per cent IDC on export because it rendered thousands of people associated with Pak-Afghan trade jobless.
He said that on the one hand federal government was announcing incentives for promotion of trade in the country and on the other hand provincial government imposed two per cent cess on export as a result of which commercial activities at Bacha Khan International Airport in Peshawar, Azhakhel dry port and Kharlachi border post had come to a standstill.
Mr Sarhadi also urged provincial government to chalk out a comprehensive action plan for promotion of regional trade and removal of hindrances in economic activities causing reduction in trade with Afghanistan and CARs.
Published in Dawn, December 5th, 2024