Hacked  By  r4dBlack

KARACHI: The main issues of policy, customs and transportation governing the Afghan Transit Trade remain unresolved even after deliberations by both the countries, Pakistan continues to suffer a loss of $2 billion annually. Over the years, the Afghan Transit Trade (ATT), facilitated by Pakistan since 1965 and ECO countries since 1997, has been massively abused by unscrupulous elements resulting in rampant smuggling by the traders who see an easy means of corruption in the unchecked cross-border exchange.

This clandestine trade has grown rapidly in the past, whereby excessive goods are deliberately imported into Afghanistan, only to push most of them back into Pakistan. This quasi-legal smuggling of goods in Pakistan is not only causing a colossal loss in billions but also discouraging the local manufacturing and legal imports in the country.

In the recent rounds of talks to review the agreement, many current issues came to the limelight. The Afghan government is now advocating the entry of Indian goods through Pakistan’s borders particularly Wagah border. Pakistani businessmen however, strictly oppose the move. Pakistan currently retains a trade volume amounting to $3 billion with Afghanistan. “Allowing Indian goods to be delivered to Afghani markets will not only endanger our trade with Afghanistan and other central Asian countries but they will also result in the entry of smuggled Indian goods in our country.”

If India is given access to Afghanistan through Wagah their goods will enter Pakistani markets through smuggling. This way, India will get easy access to Central Asian States through Afghanistan whereas Pakistan is presently denied this facility through ATT with Afghanistan, said Mansha Churra, Acting President of FPPCI.

Besides, among competition with India, there are also other reasons to contradict the proposal. “In order to reach the Central Asian states the Afghanistan government imposes 18 per cent duty on our goods while there is no duty on Indian goods,” said Engr Daroo Khan, Vice Chairman FPCCI. In the talks, Pakistan made two key demands which have been categorically denied by the Afghan side, sources told The News.

“We want the Afghan government to put the unwanted items on the negative list and to set quotas for the imported products according to their requirement in Afghanistan to ensure that Pakistani markets are safe from smuggling,” said Daroo khan.

“What if the limited imported goods are smuggled back in Pakistan, it will result in a shortage of the same in Afghanistan” an afghan official was quoted as saying at the meeting. The Afghanis are of the view that it is not in their constitution to restrict any trader from importing any goods in Afghanistan and in any quantity or number.

Smuggling of goods is seriously hampering trade in Pakistan and the government seriously needs to take measures to curb it, said Daroo Khan. “Even if we stop the transport through Wagah border, goods will be smuggled in Karachi via Iran,” he added.

The issues regarding Afghan traders also came into limelight. The Afghan traders also have objection to the additional rates they have to pay for transport through NLC, now that “we have less railway bogies.

However, stakeholders from Pakistan still believe that despite developing shortage of means of transport, transportation of goods for Afghanistan is given priority over Pakistani goods. “Despite shortage of railway bogies for Pakistani traded goods, they are still given to Afghani traders for transportation on priority” said Majid Aziz, a private dealer and former President of KCCI. Besides, business in areas close to the borders has been the most seriously affected. There is a significant impact in Peshawar and Chaman where owing to the undue availability of smuggled items businessmen do not take any initiative for production or setting up industries. This also deprives the local residents of employment opportunities.