Pakistan: Smuggling concerns rise amid surge in Afghanistan

The number of containers under Afghan transit trade transporting goods through Pakistan has increased by nearly 39 per cent, reaching a total of 102,886 containers in the 2022-23 from 74,316 containers in the previous year, according to official data compiled by Pakistan Customs as quoted by Dawn News.

The first two months of the current fiscal year have seen a persistent upward trend in cargo volumes, totalling nearly 15,000 containers. The projected total for containers in fiscal year 2024 is approximately 130,000.

It has been observed that transit cargoes have experienced a surge during the second year of the Taliban government despite the absence of banking facilities and the unavailability of US dollars within Afghanistan, the Pakistani newspaper reported.

Islamabad provided tax and duty exemptions on various commodities imports, including fruits and vegetables ever since Taliban took control over Kabul in 2021.

Besides, from July 6 last year, the government also allowed the trade of all products via land routes to Kabul in rupees, reports Dawn News.

The total import value of smuggling-prone items under transit cargo has witnessed a staggering 63pc surge, soaring from $2.287bn in the previous year to an astonishing $3.731bn in FY23. This substantial increase highlights the growing prevalence of smuggling activities in the transit sector, raising concerns among authorities and stakeholders alike, the newspaper reported.