ISLAMABAD: Ministry of Commerce (MoC) said on Thursday that Pakistan has to take more steps to improve its presence in Afghanistan and not lose the market, after Chairman Senate Standing Committee on Finance revealed that India is again gaining foothold in Afghanistan besides China.
The comments from Commerce Ministry came at a meeting of National Assembly Standing Committee on Commerce presided over Syed Naveed Qamar.
A meeting has been scheduled between Afghan Minister for Commerce and his delegation with Pakistan side on February 28, 2022 at Torkham border to sort out trade related issues.
The Committee discussed issues hindering bilateral trade with Afghanistan in detail.
Secretary Commerce, Sualeh Ahmed Faruqui noted that Pakistan has given two extensions to transit trade agreement because the agreement has not yet been finalized.
He maintained that to facilitate bilateral trade with Afghanistan through TIR, the government acquired permission to include Islamabad airport in it.
“There is a mechanism to facilitate transit trade. We are going to start talks with Afghanistan to improved bilateral trade with Afghanistan on February 28, 2022,” he said, adding that both sides are working on PTA as 65 per cent bilateral trade with Afghanistan is covered in the existing agreement.
Secretary Commerce maintained that Pakistan also has transit trade arrangements with Uzbekistan and further discussions will be held with Uzbek President who is scheduled to visit soon.
To a question, he said that State Bank of Pakistan (SBP) has done away with cash on counter for Afghanistan which is why Commerce Ministry is considering another mechanism though it has allowed rupee cover.
“We have also concluded barter agreement with Iran and now we are finalizing the mechanism. Funds are being given to Quetta Chamber of Commerce and Industry (QCCI) from EDF to facilitate barter trade,” he added.
Chairman Standing Committee on Finance, Senator Talha Mehmood enquired about transit trade with Afghanistan, adding that India is again gaining foothold in Afghanistan besides China, and suggested that Pakistan should be more vigilant in enhancing its footing.
“I think whatever is being manufactured in Pakistan certainly a part of it is imported raw material. And there is a need to devise a mechanism to export to Afghanistan,” he added.
Senator Talha argued that there is another way to facilitate trade with Afghanistan - through Telegraphic Transfer (TT) from third country. He cited the example of Yemen and proposed that E-form requirement be suspended to facilitate exports to Afghanistan.
Chairman Senate Standing on Finance argued that trade-related issues with Afghanistan should be sorted out.
“Chairman’s observation is very accurate. We are trying to resolve issues on a permanent basis. We are also facing issues with CARs,” Secretary Commerce said, adding that if Pakistan will not give required facilities for bilateral trade with Afghanistan we will lose the market.
Senator Talha further stated that restrictions on movement of dollars to Afghanistan did not give required results.
Secretary Commerce noted that the Commerce Ministry has raised the export target to $31 billion for FY 2021-22 instead of the initially proposed target of $27 billion.
He said, Commerce Ministry was projecting $1.2 billion exports to Afghanistan but now exports will be about $600 million. He maintained that flow of transit trade goods to Pakistan has reduced substantially due to fencing and other measures.
Representatives of FPCCI shared the concerns of business community with respect to limited trade with Afghanistan, suggesting that there is a need to devise a mechanism for trade with CARs.
FPCCI said that installation of WeBoc system on crossing points should be streamlined instead of using the manual system.
“All the stakeholders need to be on one page and steps be taken to curb smuggling which is still going on with Afghanistan,” FPCCI representatives said, adding that border crossing markets be set up, flights from Peshawar to Kabul may be initiated and small pickups be allowed to transport goods to Afghanistan and export of ‘Gur’ be allowed as parties have concluded agreements amounting to 40 MT of the commodity with their counterparts.
Secretary Commerce noted that system integration with other countries is required to streamline clearance of consignments, adding that in the next few weeks, electronic data mechanism will start.
The committee decided to invite representative of SBP in the next meeting.
Standing Committee on Commerce was informed of 6 projects - four new but not approved by Department Development Working Party (DDWP).
Chairman Naveed Qamar questioned if six projects mentioned in the documents are already approved, and the Commerce Ministry official clarified that out of six proposed projects for PSDP 2021-22, four are new while two are ongoing.
Chairman Standing Committee remarked that the Committee should change the rules for the development projects.
The Committee was informed that Peshawar Expo Centre has also been included in the PSDP as it has not been completed due to low allocation despite the fact that it started in 2015.
Commerce Ministry has submitted a revised PC-I for Peshawar Expo Centre which began with funding of Rs 2.5 billion in 2015 but was delayed due to piecemeal release of funds. However, now Planning Division has assured to extend the required funding for it.
Chairman Standing Committee stated that projects near completion need more funding rather than those that are about to start.
Standing Committee directed that both Planning and Finance officials should be summoned at the time of discussion on development projects.
Expo Centre Quetta is also facing issues. However, LC has been opened to import hall structure, but PD wants to allocate only 12 percent of the requisite funds.
Responding to questions raised by the representatives of FPCCI about smuggling, Dr Saeed Khan Jadoon, Member (Policy) FBR stated that smuggling has reduced manifold due to fencing and FBR’s anti-smuggling measures but acknowledged that it still exists.
The Committee was briefed about the proposed PSDP of the Ministry of Commerce for the financial year 2022-2023. It discussed two ongoing projects; the Expo Centre Peshawar and Expo Centre Quetta and four new schemes; Faisalabad Garment City Phase-l1, Lahore Garment City Phase-l1, Integrated Skill Development Scheme for Export enhancement of Textile and Apparel Industry, and Compliance Outreach Program for Export Competitiveness of Textile Industry.
The Chair expressed concerns on the non-completion of ongoing projects despite passage of 7 years. The Committee recommended the issuance of full-demanded allocation for Expo Centre Peshawar.
The meeting was attended by Muhammad Yaqoob Shaikh, Mian Muhammad Shafiq, Wajiha Akram, Sajida Begum, Farrukh Khan, Usman Ibrahim, Rana Iradat Sharif Khan, Rasheed Ahmad Khan, Tahira Aurangzeb, Shaista Pervaiz, Shaza Fatima Khawaja, and Syed Javed Ali Shah Jelani, MNAs.
Copyright Business Recorder, 2022
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