Abdul Quayyum Khan Kundi

PESHAWAR: Economic experts from Pakistan have apprised the US State department about the negative impacts of Afghan Transit Trade (ATT) on Pakistan’s economy and demanded ensuring preferential treatment from Afghanistan to Pakistani goods while redrafting the transit trade agreement.

The Pakistan team also demanded reciprocal facilities from Afghanistan for trade with Central Asian Countries, said Nauman Wazir, who is also Chairman PHSADC.

The economic experts from Pakistan recently visited the United States on a three week long visit on the invitation of the State Department to hold deliberations on redrafting the Afghan Transit Trade Agreement, informed Nauman Wazir, prominent industrialist from NWFP who was member of the delegation.

The delegation members included three economic experts from Pakistan including an official from Economic Affairs Division, one official from Federal Board of Revenue (FBR) and a businessman from private sector (Nauman Wazir). Three officials from the Afghan government were also part of the delegation.

The delegation members held meetings with US State department officials, members of different trade bodies of US, Pak-America Chamber of Commerce and representatives of SME sector in America.

‘The Pakistan team also demanded reciprocal facilities from Afghanistan for trade with Central Asian Countries which if started would restore the past glory of Peshawar as the ‘Gateway to Central Asia’, he added.

While it was also suggested that Afghanistan government should give preferential treatment to Pakistani goods in importing different items under the transit trade agreement.

Nauman Wazir, who is also Chairman Pakistan Hunting and Sporting Arms Development Company (PHSADC), said US officials were informed that due to disparity in custom duties and Import Tariff Price (ITP) between Pakistan and Afghanistan, majority of the goods imported under the ATT were smuggled back to Pakistan, inflicting severe losses due to non payment of import duty.

Nauman disclosed that the Afghan government was earning $800 million annually on receiving custom duty on goods imported under ATT which are in fact imported so as to be smuggled back to Pakistan. The practice causes a loss of $3 billion annually to the Pakistani economy, he claimed.

In this regard, he mentioned that Afghanistan imported eight times more black tea than Pakistan in 2008-09 and surprisingly Afghans drink green tea instead of black tea.

The misuse of ATT could be gauged from the fact that right hand cars, beetle nut, cardamom and spices are imported through transit trade and none of these things are used in Afghanistan.

The custom duty in Afghanistan is one fourth as that in Pakistan and low Afghan tariff attracts goods there which are smuggled back to Pakistan.

For curbing smuggling, he said, the Pakistan delegation suggested fencing of some portions of the Pak-Afghan border near populated areas.

Similarly, Nauman added, the Afghan government is not providing reciprocal facilities to businessmen of Pakistan exporting or importing goods to and from Central Asian Countries (CARs).

We also suggested some amendments in ATT to ensure that facilities provided by government of Pakistan to Afghan traders are also being extended to Pakistani businessmen by the Afghan government in trade with CARs.

Pakistani businessmen are not fully availing the opportunity of trade with CARs due to several impediments faced by them in Afghanistan.

Whereas in Afghanistan, he continued, goods imported or exported to CARs by traders from Pakistan are imposed with a number of taxes among which few are refundable but take months in clearance.

Increase in trade between Central Asian Republics and Pakistan could not only benefit the country, but the NWFP and Fata in particular which are presently facing the burnt of war against terrorism.

Simiarly, the industrialists of NWFP would also benefit from the facility who are presently facing location disadvantage of farness from the seaport.—APP