Drastic slump in Af-Pak trade blamed on new cess

PESHAWAR (Pajhwok): A business leader has voiced grave concern over a drastic slump in Pakistan’s trade with Afghanistan and Central Asian Republics.

Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) Senior Vice-President Ziaul Haq Sarhadi blamed the plummeting trade levels on a new levy imposed by the Khyber Pakhtunkhwa government.

In a statement on Wednesday, he said the enforcement of the two per cent infrastructure development cess (IDC) on export cargo was the main reason for the recent dip in trade volume between Pakistan and Afghanistan.

Sarhadi recalled: “In recent past, he volume of trade between Pakistan and Afghanistan was around $2.5 billion, which has now fallen to $700 million.”

Frequent closures of the Torkham closure, temporary admission document (TAD), bank guarantee, inclusion of 14 items into negative list, enforcement of a 10 percent processing fee and restrictions at Karachi port were cited as other factors behind the plunge in trade volume.

As a consequence of the restrictive measures, the PAJCCI senior vice-president said, more than 300 transit trade containers were stuck in Pakistan.

Sarhadi added a large portion of the Pak-Afghan trade had been diverted to Bandar Abbas and Chabahar ports in Iran, rendering thousands of customs clearing agents, border agents, shipping agents, transporters, labourers and other persons jobless.

Sarhadi asked the provincial government to review its decision on the imposition of the two per cent cess on exports, which had left thousands of people associated with Pak-Afghan trade jobless.

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