Action hailed against misuse of Afghan transit trade

KARASCHI: Business groups, including the Pakistan Business Council (PBC) and the All Pakistan Textile Mills Limited (APTMA), praised the interim government for taking steps to curb the smuggling of goods from Afghanistan under the guise of transit trade.

The PBC, the country’s largest corporate sector advocacy platform, said on the social media platform X, that it welcomed the “concrete measures” taken by the caretaker government to stop the import of items such as fabrics, cosmetics, tires, black tea, nuts, flasks and home appliances from Afghanistan that were hurting the domestic industry and depriving the state of much-needed revenue.

The council said it had long advocated for qualitative controls on sensitive items and limits based on proven demand in Afghanistan. “If they don’t drink black tea, why allow that to be imported? Good, now it can’t. And, if they drink green tea, allow only enough for the size of its population.”

The APTMA also expressed its support for the government’s actions, saying that they would help save precious foreign exchange reserves and boost the domestic industry. “Measures taken to control the misuse of the Afghan Transit Trade will yield lasting benefits; save foreign exchange and boost the domestic industry whose potential has been shrunk in the past due to smuggling and misuse of the ATT,” it said.

The Federal Board of Revenue on Tuesday imposed a 10 percent processing fee on five major categories of Afghan transit commercial goods imported into Afghanistan via Pakistan. It also directed customs agents and transport operators in Pakistan to submit financial security in the form of bank guarantees for Afghan transit goods. The caretaker government has ramped up its efforts to curb smuggling in recent weeks amid rising tensions with Afghanistan over border security and trade issues.