ISLAMABAD: In the wake of declining exports to Afghanistan, the Ministry of Commerce (MoC) has taken a number of measures to make this deficiency. Pakistan’s exports to Afghanistan have come down from $1.962 billion in 2014-15 to $1.437 billion in 2015-16.
A well placed source at MoC told Customs Today that Pakistan’s exports to Afghanistan witnessed a decline due to some certain reasons namely, the decrease in aggregate demand as a result of withdrawal of NATO forces in Afghanistan, deteriorating political relations, worsening law and order situation and frequent closure of Pak-Afghan border.
Furthermore, the source added that access of Afghanistan to Bandar Abbas in Iran had also increased over time and Afghan traders were increasingly using that port instead of Karachi due to escalating cost, poor facilities and difficulties at Karachi port. Therefore, the source said that MoC had taken a number of measures to enhance of transit and border trade with Afghanistan.
With a view to increasing exports to Afghanistan, Pakistan offered a bilateral Preferential Trade Agreement (PTA). The Afghan side has not yet responded to the draft PTA text provided by Pakistan and due to the current political climate trade with Afghanistan has been hindered, resulting in the decline.
Moreover, the source said that MoC had acceded to the TIR Convention, 1975 which was being operationalized. TIR Convention will greatly facilitate Pakistan’s trade with Afghanistan, Iran Central Asian States and beyond. Operationalization of the Convention will allow Pakistani goods to travel in Customs secure vehicles or containers and throughout the journey, duties and taxes would be covered by an internationally valid guarantee.
Moreover, the source highlighted that after the operationalization of TIR Convention, customs control measures taken in the country of departure would be accepted by all countries of transit and destination.
“It was agreed that in accordance with Article 50 of APTTA, the provisions of the present agreement shall be revised and amended appropriately with a view to further facilitating transit trade” the source maintained. Being signatories of TIR Convention both Pakistan and Afghanistan agreed in principle that convention would be accepted in APTTA to the extent possible
