PAJCCI urges removal of regulatory duty on Afghan imports

KARACHI: Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) has urged the government to withdraw the regulatory duty on imports from Afghanistan.

PAJCCI Chairman Zubair Motiwala, who headed a delegation, met Miftah Ismail, adviser to prime minister for finance, revenue and economic affairs, and raised the issue of regulatory duty on imports from Afghanistan, a statement said on Monday.

The chamber urged the adviser to waive the regulatory duty for better connectivity amongst the neighbouring countries. PAJCCI chairman further requested for convening a meeting between private sectors and government officials of both the countries to facilitate them in reconnecting and identifying common grounds of peace, prosperity and strong economic ties.

Motiwala urged the finance ministry to consider the effects of recent political turmoil over bilateral and transit trade whereby Pakistan-Afghanistan trade has dropped significantly in the last 2-3 years. Trade potential between the two countries is $5 billion. Lately, it has fallen from $2.5 billion to $1.6 billion because of bilateral tensions, the statement said.

That has helped other countries penetrate the Afghanistan market, and India has recently acquired a very strong hold both socially and economically in Afghanistan, causing double damage to the Pakistani economy as well as neighbourly relationship between the two countries, the statement added. Additionally, the recent figures show a rise in Afghanistan's trade with Iran (both transit and bilateral) and a corresponding decline in business with Pakistan due to disturbing political ties accruing since long, PAJCCI chairman said.

He also pointed that even though Karachi was the most economical route of transit trade for Afghanistan, Iran’s facilitation to Afghan businessmen was pulling the business away. Motiwala emphasised that only fiscal reforms and rationalising of tariffs would curb the tendency towards parallel trade and enhance mainstream trade.

That would not only improve the deteriorating trade balance of Pakistan with Afghanistan, but also help wipe off the prevailing current account deficit of the country.

Motiwala said frequent border closures, heavy demurrages, waiting time, uncertainty and diversion of both bilateral and transit trade to other avenues was causing psychological rift and resulting in long-run instability in relations with the prime neighbour.

He believed that both the governments should keenly follow-up the matter and develop measures of a long term nature, for ensuring overall economic stability in the region. He once again requested the finance ministry for waiver of any applicable port charges (detention / demurrage) applied to Afghan consignments / containers accruing from the closure of the border to limit the monetary losses of the business community.

PM Adviser Miftah Ismail acknowledged the chamber’s proposal and agreed to convene a meeting with the ambassador of Afghanistan in the context of pending Afghanistan Pakistan Transit Trade Coordination Authority and Joint Economic Commission, the statement said.

The adviser also assured due support from the finance ministry to the private sector in expanding the exports and developing fruitful trade ties in the region. He also affirmed that he will raise the issues of waiver of regulatory duties imposed upon Afghanistan and demurrage and detention applied during the time of border closure with the ministry of commerce for its effective resolution.