KARACHI: To develop mutually agreed barter trade mechanism between Pakistan and Afghanistan the disparities need to be removed and government facilitation is required to discuss this with Afghan authorities, like border crossing Chaman has no access to E-form & EIF where traders of Balochistan have to bring these documents from other provinces, said Faiza Zubair, Secretary General, Pakistan Afghanistan Joint Chamber Of commerce and Industry (PAJCCI).
Zubair informed that meetings for developing barter trade mechanism will take time due to its unique nature as it is not dependent on two items as in case of Pak-Iran agreement.
It is imperative that E-Form and EIF requirement shall be waived off till 31st December 2022, increase PKR trading category items, encourage PKR trading to reduce pressure on foreign currency crunch being faced by both countries.
The persisting issues of Sales Tax refund and duty draw back claims in case of land route and PKR trading are major obstacles in increasing trade volume; SRO shall be issued to address this issue from regulatory authorities on urgent basis.
Processing of the third party payments by banks remains the top obstacle for Pak-Afghan business community; the refusal is discriminatory despite amendments by OFAC whereas other countries are easily using this option without any sanctions.
PAJCCI established that new and additional border crossings shall be opened with priority especially “Nawapass” as it has necessary infrastructure on both sides to support bilateral transactions of Swat. It was also brought to notice that despite approval Kharlachi border is not operational on 24/7 basis which is needed to relax the congestion on other borders.
To further the trade activity PAJCCI has held several events by bringing business community of both sides together and generated huge investment and joint venture interest but so far, no official policy has been announced.
Zubair Motiwala; Chairman PAJCCI appreciated the opportunity to represent PAJCCI at the meeting and said that relevant ministries need to issue necessary regulatory orders & devise policy to address all matters creating obstacles.
It creates stress and trust deficit in business community and Pakistan loses effective and cost-efficient trading with its most close neighbour. We are not taking advantage of wide array of trading opportunity in the region and other countries are as far as EU are actively trading with Afghanistan and bringing revenue to their country.
PAJCCI attended JEC inter-ministerial meeting held by Afghanistan Inter-ministerial Coordination Cell (AICC), chaired by Mohammad Sadiq; Special Envoy for Afghanistan at Islamabad Tuesday.
The meeting was prelude to upcoming Joint Economic Commission meeting between Pakistan and Afghanistan with a wider agenda of cooperation between the two countries in diverse fields including enhancement of trade and economic activities, improved people-to-people contact, upgrading border infrastructure, investments and joint ventures. In the first Joint Business Council meeting, transit and bilateral trade, free economic zones, trilateral trade agreement between Pakistan, Afghanistan and Tajikistan, tax & duties, technical assistance to Afghan Customs, MoU for banking sector between the two countries were also discussed.
PAJCCI provided technical insights and recommendations to foster trade and economic activity, highlighted pending issues which are creating obstacles in promoting trade and revenue. The SRO to operationalize cross-stuffing is yet to be issued by FBR even after passing of three months.
Copyright Business Recorder, 2022
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