Bilateral Pakistan-Afghan trade

29 Aug, 2005

The promotion of bilateral trade between Pakistan and Afghanistan is the need of hour and for this purpose all hurdles should be removed for Pakistani exporters in Afghanistan andd Afghan traders in Pakistan. Afghan Mail Service should also be restarted to enable maximum number of traders to travel between the two countries.
Furthermore, the facility of the Red Pass with passports should also be revived. The Afghan government should simplify import procedure, particularly the conditionality of Elm-e-Khabar, a document issued by Afghan Trade Commissioners in Peshawar and Chaman should be waived.
The unique document of Elm-e-Khabar, prepared in the light of the papers sent by Afghan importers, is a long and complicated procedure.
The Afghan government should also revive trade liaison offices at the trade commissioners at Peshawar and Chaman.The Liaison Officer used to play the role of a bridge between the governments of both countries and whenever any Pakistani or Afghan trader was facing any problem, the concerned officer would come to his rescue.
At present no land route trade is going to Central Asian Republics as the exporters are facing a number of hurdles created by domestic as well as foreign agencies.
The Chitral District in the NWFP provides the shortest access to the Central Asian Republics. The distance of Attock Bridge to Chitral is 340 kilometres while the distance from Shahi Bazar Chitral to Tajikistan is only 200 kilometres. In 1993, the National Highway Authority (NHA) had conducted survey of Garam Chishma Ashkasham Highway project to connect Gawadar with Kohat through Kohat Tunnel on Indus Highway, en-route Peshawar, Mardan, Malakand, Dir and Chitral with Tajikistan.
The traders of Central Asia and China were using the Chitral route for travelling to Peshawar and other parts of the Sub-continent, until the Communist Revolution in Russia closed this route.
Badakhshan, an adjacent Afghan province to Chitral, is also a very peaceful and hospitable passage for the traders. The member states of Economic Co-operation Council (ECO) should develop the route, which is already present.
The opening of the borders through Chitral can help earn handsome foreign exchange for the country and the backward district of Chitral could develop on the pattern of the city of Karachi.
The Central Asian Republics used to import 90 items, including food items like rice, sugar, poultry products, mineral water and garments etc.
Pakistan has the potential to export all these items, but still she is far behind other countries in the import trade of these newly independent States.
It is high time for the federal government to take positive and solid steps for the promotion of land route trade with Central Asia and frame a comprehensive Pak-Afghan Trade Policy to help promote land route trade with these Central Asian Republics.
Formulation of a comprehensive Afghan trade policy is needed. Also the government should allow the payment of duty drawback in proportion to foreign currency at both Torkham and Chaman.
The allowing of trade through these routes and payment of duty drawback in foreign currency could pave the way not only to Afghanistan, but also to Central Asia.
To promote trade with Afghanistan, the government should suspend the Export Development Surcharge (EDS) for a period of five years along with abolition of withholding tax. The movement of material required in reconstruction should be free across the border with Afghanistan. Pakistan exporters should compete with Iran and India in Afghanistan.
The opportunity will not be knocking at our doors again and again so the government is required to take wise decisions for achieving the targets of exports.

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