According to a Recorder Report from Islamabad, the Pakistan government has made up its mind to transfer cooking oil from the negative to positive list under the Afghan Transit Trade Agreement. There is a strong likelihood of its announcement at the end of the two-day Joint Economic Commission (JEC) meeting, scheduled to commence in Islamabad on June 14.
The decision, in this regard, is reported to have been taken following the observation of the Central Board of Revenue that the ban on cooking oil export to Afghanistan has strained relations between the two countries. However, as the Afghan side at the JEC meeting, for reasons of its own, is expected to seek transfer of several other items in like manner, these would be responded to, keeping in view their impact on Pakistan's economy.
It goes without saying that the JEC meeting will discuss ways and means to enhance bilateral trade, which now stands at above $2 billion. In so far as Pakistan is concerned, it would take up the issue of frequent smuggling of exported goods back into Pakistan, besides joint measures to stop smuggling of fertiliser to Afghanistan.
For it has been noted that it was only recently that customs intercepted a consignment of ghee, product of an NWFP-based factory, and found, instead, fertiliser hidden in the tins.
Pakistan will have reason enough not to yield to any request for inclusion of auto parts and cigarettes in the positive list, for trade in these items between the two countries stands banned. If Pakistan allows transit facility to Afghanistan for cigarettes and auto parts, it is feared both the items would be smuggled back into Pakistan, thereby hurting the domestic industry.
Similarly, although the Afghan side is likely to make a strong plea for transit facilities for Indian goods, Pakistan would not accede to it either, much though it is inclined to facilitate greater flow of foreign goods to that country, in view of special relationship with it.
The two sides would also discuss a proposal for establishing a 'Qualified Industrial Zone' on the border, which is aimed at facilitating investors of both countries to set up industries, products of which may subsequently be exported to the United States of America.
According to this proposal, mooted during President Bush's visit to Pakistan, the US would be asked to allow imports from the 'QIZ', on 'zero duty', to help generate healthy economic activities on the Pak-Afghan border areas, so that poverty is properly addressed, especially, from involvement of the local population, thereby also exercising a check on terrorist activities, by providing the tribals with lawful earning opportunities.
It will also be noted that the proposal also stipulates that QIZ on Pak-Afghan border would be distributed between the two states, 80 percent to Pakistan and 20 percent to Afghanistan. One hopes that their combined thrust would prove advantageous to both the countries.
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