The installation of tracking devices on the trade bound carriers, under the latest Afghanistan Pakistan Transit Trade Agreement (APTTA) would not serve its purpose in curbing corrupt practices, analysts said on Tuesday. Concerned authorities have agreed to install tracking devices on the tops of all carriers, transporting goods under the APTTA, to ensure they reach their desired destinations.
Talking to Business Recorder, the analysts, belonging to public and private sectors, said the decision to install the tracking devices on the trade bound carriers would not serve its purpose as the decision is taken to ensure that goods imported for Afghanistan could safely reach its destinations, but it does not look effective enough to restrict those goods to reach the local markets. This would also provide an opportunity to the corrupt people to bolster their practices, they added.
The analysts further said the effective monitoring of transit cargo could only be made possible if the tracking devices are installed in the trade bound carriers instead of on top of them. Expressing fear they said although the authorities of either side have agreed to collect financial guarantees equal to the amount of import levies of Pakistan from authorised persons to keep a check on the illegal trade, the chances of a misuse of the said guarantees for the import of banned items including cloths, cosmetics, etc from India for local markets could not be ruled out.
Responding to a query, they said the agreement could be fruitful for Pakistan if they bound Afghanistan to avail the transit facility only for those items that are needed in their country. Furthermore, they said if the Pakistan government cannot bound its neighbour in this regard, there is another way to curb the illicit trade activities on the transit trade route.
Elaborating, they said the rates of duties and taxes, which are around 45 per cent, should be reduced in accordance with the tax-rates applied in Afghanistan to encourage importers to use legal channels to market their imported goods in the country.
Moreover, the analysts said the basic principle rules and custom components ie introduction of common external tariff and custom law, industrial, agricultural, competition, investment, import/export, banking and foreign exchange, anti-dumping temporary import/export, export processing duty and free zones, draw back for manufacturing of goods for export, product standards, technical regulation and under bond manufacturing policies and strategies should be revised by the authorities in order to improve the trade activities in Pakistan.
They also urged the authorities to allow a cross border movement of goods from either side to create adequate trade benefits for them. Lastly the analysts said the APTTA, besides raising security concerns of Pakistan, would adversely effect its economy.