Pakistan, Afghanistan extend timeline to facilitate trade

ISLAMABAD: Pakistan and Afghanistan have given another six months extension to an agreement for facilitating the movement of goods between and through their respective territories.

Both sides signed a six-month extension of Afghanistan-Pakistan-Transit Trade Agreement (APTTA) on Thursday. The signing ceremony was held via video link simultaneously in Kabul and Islamabad. It is expected that the new APTTA will be signed next month. The countries last extended the facilitative protocol in April. The APTTA that was signed originally in 2010 had expired in February. According to an official announcement, Adviser to Prime Minister for Commerce and Investment Razak Dawood and Afghan Minister for Industry and Commerce Nisar Ahmad Faizi Ghoryani presided over a virtual ceremony organized for signing of protocol-VI of APTTA 2010 to extend the agreement for six months beyond 11th May, 2021. Secretary Commerce of Pakistan and Deputy Commerce Minister of Afghanistan also attended the ceremony.

The extension was essential to facilitate uninterrupted flow of transit trade between the two countries and to provide sufficient time to technical teams to conclude negotiations on the new APTTA 2021. The ministers appreciated the work of technical teams for the progress attained so far in the negotiations. They directed the technical teams to forge consensus on the outstanding issues in the new APTTA 2021, to ensure its conclusion, signing and notification at the earliest for the benefit of trade, transit, investment and connectivity between the two brotherly countries. The ministers also agreed to meet in Kabul on the sidelines of the 9th Afghanistan-Pakistan Transit Trade Coordination Authority meeting to push forward the negotiations on APTTA 2021 and also to hold business and investment conference in August 2021.

Under the agreement, there will be freedom of transit through the territory of each contracting party via the pre-settled routes most convenient for international transit, for traffic in transit to or from the territory of other contracting party.

“No distinction shall be made which is based on flag of the vessel, the place of origin, departure, entry, exit, or destination, or any circumstances relating to the ownership of goods, vessels or other means of transport,” the agreement said. According to the State Bank of Pakistan (SBP), exports to Afghanistan increased to $895 million in the first 11 months of the last fiscal year of 2020/21. That was compared with $827 million in the corresponding period a year earlier. In May, exports to Afghanistan amounted to $67 million compared with $17 million in the same month a year earlier and $82 million in April. In FY2020, exports to Afghanistan declined to $890 million from $1.2 billion in FY2019. In July-May, Imports from Afghanistan rose to $164 million from $119 million. In May, imports from Afghanistan stood at $16 million compared to $3.6 million the same month previous year. However, April imports were higher at $20 million. Imports from Afghanistan fell to $122 million in FY2020 compared to $170 million, according to the SBP.