Pakistan has reportedly turned down Kabul's demand regarding India's access to Afghanistan through land route, an old demand which has never been accepted by any Pakistani administration well-informed sources told Business Recorder.
Afghan President Ashraf Ghani is on a two-day official visit to Pakistan to discuss four issues, i.e, peace, reconciliation, trade and connectivity. Both the United States of America (USA) and the Great Britain are playing the role of facilitators.
The sources said issues like peace and reconciliation have been discussed with the political leadership, including Ministry of Foreign Affairs, and military leadership as these matters fall within their domain.
However, issues related to trade and connectivity came under discussion at the highest level. Afghanistan is heavily under the influence of Indians engaged in almost every Afghan Ministry as Advisors or Consultants and who are not in favour of close trade and political relations between the two neighbours.
Afghanistan, in its written wish list, urged Pakistan to give India access to Afghanistan through land route. However, Islamabad clearly rejected this demand, saying that this is not possible at least for now.
Afghanistan complained that Pakistan has imposed two types of Non Tariff Barriers (NTBs) on Afghani products, i.e, at the border and within the territory of Pakistan. And maintain that Pakistan's law enforcing agencies are coming down hard on its products which reach Pakistan through legal channels but are being portrayed as smuggled products due to damage to their branding.
Afghanistan has also urged Pakistan to renegotiate Afghanistan Pakistan Transit Trade Agreement (APTTA) as initially it was for five years. Pakistan had sent a draft APTTA to Afghanistan a couple of years ago but there has been no progress on it as Afghanistan had linked it to India's access to Afghanistan through land route.
Pakistan, sources said, had also shared Preferential Trade Agreement (PTA) with Afghanistan which has yet to respond to it and is urging for an Early Harvest Program (EHP) to increase bilateral trade.
However if there is a change in government in Afghanistan after the scheduled October elections the question being raised is whether a new president would accept a treaty forged by Ashraf Ghani.
Last week Prime Minister's Advisor on Commerce, Abdul Razak Dawood while presiding over an inter-ministerial meeting on Afghanistan clearly stated that APTTA is damaging Pakistan's domestic industry.
One of the participants had argued that "Pakistan cannot impose harsh conditions on transit trade than what already exist."
Pakistan has imposed five conditions on transit goods coming from Afghanistan including installation of trackers, scanners and electric data exchange but these conditions are not applicable on goods like auto sector and cigarettes coming from Iran.
Commerce Advisor is in favour of imposition of quantitative restrictions on Afghanistan's goods and tariff rationalization and payment of duties and taxes by Afghani importers in Pakistan which may be reimbursed after the consignment crosses Pakistan.