Pakistan-Afghanistan Trade
Pakistan-Afghanistan trade volume move down to USD 1 bn
Karachi, Pakistan: A report of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) has voiced its concern over the “shrinking” trade volume from $2.5 billion to $1 billion between the two countries, media reports said on Monday.
“Lack of business-friendly policies, absence of proper barter trade mechanisms, ineffective investment and joint venture policies apart from unnecessary pressure and action by the FIA and FBR are the main factors that reduced the trade volume,” the report submitted to a committee on Afghanistan, headed by National Assembly Speaker Asad Qaiser, on Saturday said as quoted by The Express Tribune.
It stated that in the absence of an operational banking structure in Afghanistan, banks refused to process third-party payments which hindered international transactions.
In addition, imposition of duties, fiscal reforms, double taxation, and unilateral imposition of duties and taxes by either government also affected the trade.
Speaking to The Express Tribune, PAJCCI Chairman Zubair Motiwala said, “The trade volume between the two countries should reach $5 billion, but due to the absence of a banking system in Afghanistan, payments through third countries are not possible.”
He added that the government has not yet facilitated trade in rupees with Afghanistan whereas barter trade is also not allowed.
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