Barter trade mechanism: PAJCCI to hold FGD to finalise draft from 8th

KARACHI: Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) has conducted several meetings and reviews to finalise the proposals to develop barter trade mechanism and to reach a joint framework, it is holding Focus Group Discussion (FGD) in Islamabad on June 8-10.

Afghan delegation will be led by Khan Jan Alokozai, Co-Chairman PAJCCI. He has been instrumental in convincing Afghan government to allow several concessions and approval to further the cause of trade between two countries.

The 9th Focus Group Discussion will also deliberate on current issues and opportunities entailing bilateral, transit and barter trade with Afghanistan and Central Asian Republics (CARs).

Zubair Motiwala, Chairman PAJCCI appreciated the role of all stakeholders and especially business community to have extended full support in preparation of framework, workable solutions and highlighting the risks and obstacles in way of bilateral and barter trade. He hoped that upcoming FGD will finalise all recommendations and will shape the final draft for both governments to be presented at the ministerial level.

He lauded the efforts of PAJCCI team which in short time has carried out numerous meetings, prepared documents, researched the best practices, coordinated with various government entities and brought everyone together to work on this special project in limited time.

He urged Government of Pakistan to extend the waiver on E-Form and EIF till 31st December 2022 as it is about to expire at the end of June whereas barter trade mechanism is still passing through deliberation stage.

He said that finalisation of barter trade mechanism will take more time due to unique nature of trade with Afghanistan and removal of trade obstacles is imperative hence these measures shall be taken up promptly.

The trade is declining with Afghanistan due to some administrative issues while traders are patiently facing infrastructure problems at border crossings, limited operational borders, high cost of fuel, unannounced route closures, forfeiture of containers filled with goods by security institutions, increasing labor and transport costs, causing trust deficit with government. He reiterated to increase PKR trading category items and identify solution to process third party payments without further delay.

It is important to understand the trade with Afghanistan is the best viable option for both countries as most cost-effective and efficient trading partners.

Copyright Business Recorder, 2022