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The Ministry of Commerce (MoC) has proposed that the border crossing infrastructure (BCI) at Chaman and Torkham requires up-gradation and modernisation to ensure fast track transit of trade and transport to Afghanistan. This proposal was put forward by a representative of the ministry at a meeting held here sometime back to identify problems relating to Afghan transit trade. It was emphasised that the strategic location endowed Pakistan with an exclusive geographical advantage viz land-locked Afghanistan and Central Asian Republics (CARs).
This natural advantage is being wasted by our failure to put in place a highly competitive and modern system of throughput from seaports of Pakistan to final destinations in Afghanistan and beyond vice versa, the ministry official added.
A desirable position would be to complete customs formalities in advance of the arrival of ships carrying transit goods at the seaports of Pakistan.
The goods should immediately be transferred to rail and road transport vehicles under customs direct delivery system to minimise the turnover time at seaports and the road transport should ensure uninterrupted throughput to destinations in Afghanistan.
The Pakistan Railways should also ensure a similar ex-hook direct delivery system at railways terminals at Peshawar and Chaman to reduce the cost, hassle and turnover time of transit cargo.
Thereafter all dealing agencies, including shipping lines, port authorities, National Logistic Cell (NLC) as well as Pakistan Customs need to revisit their operating procedure to upgrade them in accordance with the requirements of 21st century.
It would be desirable that the Afghan authorities should also review their import and export systems to make them fool proof against misdeclaration; on the way substitution and smuggling back to Pakistan etc.
It was suggested that one good way to achieve this can be to establish land ports and dry ports in commercial centres of Afghanistan like Kabul, Kandhar, Jalalabad, Herat etc. Safe arrival of transit goods to and from these dry ports of Afghanistan and seaports of Pakistan should be efficiently monitored by customs authorities of both the countries.
The NLC representative thought that a flexible policy should be adopted, keeping the nuances of transportation business in mind.
The NLC was just charging 45 percent of the market prices and was as competitive as other transporters in the private sector and had more facilities.
The freight forwarders of Afghan transit goods brought to the notice of the meeting that there was no demurrage charge in our neighbouring country for Afghan transit goods for 28 days, whereas in Pakistan, the Karachi Port Trust (KPT) was not granting any such waiver or facility and was in fact over charging.
Also the shipping lines are over-charging for de-stuffing cargo, increasing the cost of doing business.
It was suggested that the government of Pakistan should extend maximum facilities to the Afghan traders so that the Afghan transit trade business might not get diverted towards the neighbouring country.
The KPT did not have the facility for storing oils and vegetable ghee in bulk, which was now allowed in Afghan transit trade.

Copyright Business Recorder, 2005

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