Pakistan''s top insurance companies have reportedly agreed to lower their charges from 1.8 per cent to 0.8 per cent, after extensive deliberations between Finance Minister Dr Abdul Hafeez Shaikh and visiting Afghan Commerce Minister Dr Anwar ul Haque Ahadi, well-informed sources told Business Recorder.
The sources said prior to Afghan delegation''s arrival in Islamabad, Member Customs held extensive meetings in Karachi with the ''A'' grade insurance companies in the first week of August 2011. Consequently, four ''A'' grade insurance companies agreed to issue the requisite insurance guarantee to the Afghan importers. They have so far issued 15 insurance guarantees.
The agreement was operationalised on June 12, 2011. The FBR notified the transit rules on June 13, 2011. However, no transit container was cleared at Pakistani Port as no insurance company was prepared to furnish insurance guarantee on transit goods. As a result, the transit trade had come to a virtual standstill after the implementation of the agreement. The Afghan side also raised some reservations on the transit rules notified by the FBR, which have been communicated to the FBR. These reservations have been examined in the meetings.
A meeting between Secretary Commerce, Foreign Secretary and Chairman FBR was held on July 7, 2011 in the Ministry of Commerce. After discussion, the participants recommended deferment of Article 3 of Protocol 3 of APTTA regarding customs security for goods for a period of 60 days. A summary was submitted to Prime Minister Syed Yousuf Raza Gilani for approval, who cleared the requested deferment and directed the finance ministry to hold a meeting with the relevant stakeholders to expedite the operationalisation of APTTA.
In a few reported cases, exports of Pakistan destined to Central Asian Republics through Afghanistan are stuck up at the border, as the Afghan side has not been able to facilitate the said exports under APTTA, 2010.
The reason has been that Afghan government/customs have not so far framed any rules to implement APTTA, 2010. Besides, they are not accepting insurance guarantee for the said goods. However, the Commercial Attaché of Afghanistan in Karachi on August 18, 2011, had informed the Chief Collector of Customs, Custom House Karachi that on the basis of full reciprocity, the Government of Afghanistan had allowed Pakistani exports transiting to Central Asia through Afghanistan without payment of government dues for a period of two months effective July 7, 2011.
It has also been brought to the notice of the FBR that difficulties are being faced in transportation of Afghan exports from Chaman and Torkham to Wagha as customs lincenced bonded carriers are normally not available in Torkham and Chaman for transportation of such goods. Consequently, the FBR directed the Collector MCC Peshawar to devise a mechanism for licencing of transport operators working in Torkham and surrounding region. In the meantime, exports have been allowed in Pakistani trucks.
The two sides discussed further enhancement of bilateral trade, which currently stands at $1.7 billion. During the discussion both sides agreed to integrate their economies, identification of the core areas in the spirit of progress, and to constitute three different committees for progress in this direction.