Concern over cut in trade with CARs and Afghanistan

PESHAWAR: The Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), has expressed its deep concern over the drastic reduction in trade with Afghanistan and Central Asian Republics (CARs).

In a statement issued here on Wednesday, PAJCCI Senior Vice-President Zia-ul-Haq Sarhadi blamed enforcement of two percent Infrastructure Development Cess (IDS) by the Khyber government on export cargo as the reason for the recent dip in trade among Pakistan, Afghanistan and CARs.Zia said in the recent past the volume of bilateral trade between Pakistan and Afghanistan was around 2.5 billion dollars which later shrank to a mere 700 million dollars.

Citing other reasons behind this plunge in trade volume, he said it included frequent closure of the Pak-Afghan border at Torkham, Temporary Admission Document (TAD), implementation of the ban on Pak-Afghan trade including 100 percent bank guarantee, the inclusion of 14 items into negative list, enforcement of 10 percent processing fees, restrictions at Karachi port causing withholding of more than 300 containers of transit trade.

Zia said due to the stopping of these more than 300 containers at Karachi port, huge financial penalties under the head of demurrage and detention charges were imposed and a large portion of Pak-Afghan trade was diverted to Bandar Abbas and Chabahar ports in Iran, rendering thousands of custom clearing agents, border agents, shipping agents, transporters, labourers and other associated persons as jobless.

The PAJCCI said due to the enforcement of two percent IDS on export goods in KP, most of the export consignments that were transported to Afghanistan from the Torkham border have been shifted to the Chaman border in Baluchistan, depriving KP of substantial revenue.

He demanded KP government to review its decision on the imposition of two percent IDS on exports because the decision had rendered thousands of people associated with Pak-Afghan trade as jobless.

Zai said on the one hand federal government was announcing numerous incentives for the promotion of trade in the country, while on the other the KP government had imposed a two percent cess on exports as a result of which commercial activities at Bacha Khan International Airport in Peshawar, Azhakhel dryport, Khar Lachi border post had come to a standstill.

He urged KP government to forthwith chalk out a comprehensive action plan for the promotion of regional trade and for the removal of hindrances in economic activities causing a reduction in trade with Afghanistan and CARs.