According to the chairman of Pakistan Tea Association (BR 24-3-2007), the import of black tea through legal channels declined by 24% in 2006 while the import under Afghan Transit Trade Agreement (ATTA) has been recording more than 10 percent growth per annum.
Pakistan is the third largest consumer of black tea, mostly from Kenya, at more than 100.945 million kg per annum costing our national exchequer Rs 11.620 billion in hard-earned foreign exchange.
The precise volume of black tea under ATTA is not known but it can be estimated from a simple calculation. The chairman, PTA has stated that tea consumption in Pakistan is estimated at 187 million kg per annum. It is obvious that the volume of trade of black tea under ATTA is something like 86 million kg if you deduct 100.945 from 187 million quoted above.
The importers of black tea in Pakistan has long agitated against the import of black tea under ATTA. When the duty-free black tea for Afghanistan finds its way back into Pakistan, it becomes next to impossible for the genuine Pakistani importers to sell their legally imported tea in the market.
Inspite of border forces in place, there appears to be free flow of black tea from Afghanistan for one reason or the other. The government is losing import duty on billions of dollars worth of black tea allowed under ATTA. At the same time, the genuine importers of black tea are suffering enormously for no fault of their own.
There can only be two options. Either the government reduces the import duty on black tea to zero percent or disallows the import of black tea under ATTA. Pakistan Tea Association also needs to highlight this issue more vigorously through press statements, press ads in the form of appeals, contact with the law enforcement agencies and trade boycot of the tea traders dealing in the transit trade tea. As I wrote in the 'International Management' magazine of London some 20 plus years ago, "everything is impossible until you make up your mind to do it."
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