New Pakistan-Afghan Transit Trade Agreement: chambers, trade bodies be taken into confidence
Business community of Pakistan has called for taking all chambers and trader bodies into confidence before signing of the new Pak-Afghan Transit Trade Agreement, Ghulam Sarwar Mohmand, a member of the Ministry of Commerce constituted committee told APP on Saturday. A new trade agreement is being negotiated between Pakistan and Afghanistan under the auspices of the World Bank.
The Ministry of Commerce has included three representatives of the private sector in the consultation process. They are included Ghulam Sarwar Khan Mohmand, a former president of Sarhad Chamber of Commerce and Industry (SCCI), Zubair Motiwala of Karachi and president, Quetta Chamber of Commerce and Industry (QCCI). A two-day joint ministerial meeting of the government of Pakistan and Afghanistan is scheduled on November 18 and 19 in Afghan capital Kabul.
The industrialists and traders of Pakistan have expressed reservations over the draft agreement prepared under the auspices of the World Bank. The present Afghan Transit Trade Agreement (ATTA) was signed in 1965 was totally one sided and goes in favour of Afghan traders. In this connection, a meeting of the committee has already been held at the Ministry of Commerce.
Senior Joint Secretary and Director General (DG) Foreign Trade at the ministry presided. The participants of the meeting were given presentation on the draft agreement on trade with Afghanistan. The representatives of the private sector expressed reservations over the clauses of allowing Indian transport companies for transportation of goods via Wagah Border and the transportation of Afghanistan bound goods through Afghan trucks from Karachi Sea Port to Kabul.
The representative of Sarhad Chamber expressed concern over the allowing of both Indian and Afghan drivers to travel inside in Pakistan both on security and business grounds. The officials of the ministry, Sarwar Mohmand said have agreed in principle that Pakistan arriving goods under ATTA for Afghanistan would be transported from Karachi to Torkham through the trucks of National Logistic Cell (NLC), Pakistan Railways and private Pakistan good carriers.
The private sector representatives said that the existing agreement favours only Afghanistan and allowing all kind of goods. More than 90 percent of such goods used to re-enter Pakistan and flourish Bara markets in different parts of the country. The business community has stressed Federal Board of Revenue (FBR) for keeping strict check on the smuggling of these goods back into Pakistani territory.
The flourishing of the smuggled goods markets are badly affecting industrial and trade sector in Pakistan. The new trade agreement with Afghanistan would be on bilateral basis and like Pakistan; Afghanistan will have to facilitate the passage of Pakistani products to Central Asian Republics. "The government of Afghanistan would be required to extend the same facilities as provided to their traders by the government of Pakistan," clarified Sarwar Mohmand.
The governments of both countries have geared up their efforts for the finalising of the agreement in next month. But, the representative of the business community on the committee says that it was necessary for the government of Pakistan. "The government should delay it for a period of six months to hold negotiations and took all chambers of commerce and trade bodies into confidence over the matter," he suggested.
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