The business community of Islamabad and Rawalpindi has expressed serious concerns over the signing of the minutes of the meeting by the commerce ministers of the two countries that provide a disturbing blueprint for the subsequent finalisation of the Afghanistan-Pakistan Transit Trade Agreement (APTTA).
Zahid Maqbool, President ICCI while talking to Business Recorder said that the government should have taken on board the private sector and the transporters before finalising the new minutes of the agreement with Afghanistan. He categorically denied Commerce Minister Makhdoom Amin Fahim's claim that the private sector had any input in the final minutes that were signed between the commerce ministers of the two countries. "Taking unilateral decision on such key matters will not serve the interest of our business community and the country at large", he added.
He accused the government of giving a free hand to Afghan transport units in Pakistan by allowing them to carry goods from Afghanistan all the way to Wahga border for export to India. It would badly affect the business of local transporters that are involved in Afghan transit trade and will also create new security problems for the country.
He expressed concern that this agreement may unleash a new wave of smuggling in the country. APTTA is already a major source of smuggling into Pakistan causing huge revenue losses to the economy and adversely impacting on local businesses. According to some estimates, APTTA accounts for 75 percent of an estimated $5 billion worth of smuggled goods entering Pakistan annually. He emphasised that the new APTTA, when signed, should plug such loopholes completely.
ICCI President urged the government to take concrete steps to discourage smuggling from Afghanistan including linking the existing Afghan imports with LCs and bank guarantee, compulsory licensing for Afghan imports, placing quantitative restrictions on them, maintaining increased sensitive list of items and equalisation of customs tariff on items imported by Afghanistan under the transit facility.
Afghan government has imposed 18 percent custom duty on Pakistani products besides erecting many non-tariff barriers to discourage Pakistani exports. Contrary to this, Afghanistan has extended maximum favour to Indian goods by lowering the custom duty at zero percent besides giving 50 percent concessions to the freight charges for all the Indian exports reaching the Chahbahar seaport. Pakistan should ask Afghanistan for extension of similar concessions to its exports.
He appreciated allowing Pakistan to export its goods to Central Asia through Afghanistan under the signed minutes. But stressed that if Afghan containers and trucks can be allowed to carry goods up to Lahore then the Pakistani containers and trucks should also be allowed on reciprocal basis to carry Pakistan goods through Afghanistan to Central Asia and for this purpose road links should be established with Central Asia.
President Rawalpindi Chamber of Commerce and Industry (RCCI) Kashif Shabbir said that business community was not taken into the confidence before signing the agreement. It is a fact that Indian products would be dumped in the Pakistani markets as the government has not made appropriate arrangements to control smuggling, he alleged.
He further said that the only positive feature about the agreement was that the Pakistan could access the markets of Central Asian States. "But the involvement of India would harm Pakistani interests in this regard", he said. Kashif Shabbir suggested to the government to ensure that all trade be based on Letters of Credit and a positive list of products must be approved by the two sides.