PESHAWAR: Office bearers of Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) have discussed modalities to enhance Pak-Afghan trade and regional connectivity with high ups of Special Investment Facilitation Council (SIFC).
The meeting headed by Lt-General Sarfaraz and was attended by Chairman Zubair Motiwala, President Jawaid Bilwani (KCCI & Former President PAJCCI), President Junaid Makda (PAJCCI), SVP Zia-ul-Haq Sarhadi, and VP Pervez Lala, Former Director Shahid Hussain, according to news release issued here on Sunday.
The discussion focused on several key issues and positive developments highlighting improved reserves, reduced dollar rates, decreased smuggling, along with the international confidence in Pakistan, reflected through visits of high-profile delegations, the press release added.
However, concerns were raised about the challenges facing Pakistan-Afghanistan trade, with a particular focus on the vital $2.76 billion market that could be lost to regional competitors if restrictive policies continue.
The delegation criticized the suspension of transit trade and its shift to Chabahar, emphasizing the $300 million annual revenue loss and the rise of informal trade due to these policies.
The imposition of the 2% Infrastructure Development Cess (IDC) by KPK was also strongly opposed, as it negatively impacts exports and trade with Central Asia.
Further discussions revolved around the impact of recent SROs on Afghan transit trade, which caused an 80% drop in trade value, and the retaliatory tariffs imposed by Afghanistan on Pakistani goods.
Chairman PAJCCI, Zubair Motiwala called for separating business from politics to ensure trade growth and suggested practical solutions, such as implementing rail-based cargo systems, establishing banking channels at borders, and creating joint tracking systems with Afghan businesses to reduce smuggling.
The importance of digitizing border trade systems and expediting processes for faster currency declarations was also emphasized.
Key recommendations included addressing the 10% processing fee and IDC through collaborative forums, forming working groups to tackle specific trade challenges, and focusing on actionable resolutions for improving trade relations with Afghanistan and Central Asia.
Appreciating the initiative of inviting businessmen by the august forum of SIFC for streamlining of Pak-Afghan trade, SVP PAJCCI, Zia-ul-Haq Sarhadi said official intervention is of paramount importance to improve regional trade which has the potential of creating livelihood sources for millions of people in several countries.
He said Pak-Afghan bilateral trade is on constant decline during the last several months and needs special attention and measures for revival.
He expressed the hope that such initiatives will help in rekindling the lost glory of Pak-Afghan trade which has the potential of more than three billion US dollars on an annual basis and would benefit millions of people on both sides of the border.
Copyright Business Recorder, 2024