Afghanistan is by no means innocent in placing restrictions on Pakistan's trade with the CAR's, so hopefully the linking of open transit for Pakistan to the CAR's to Afghan transit through Pakistan will help resolve some of the issues faced by Pakistani traders mentioned in this article:
Exporters facing undue hurdles in Afghanistan
By Sajid Chaudhry
ISLAMABAD: Pakistani exporters, exporting goods to Central Asian Republics via Afghan land route, are facing money extortion by Afghan warlords whereas the Ministry of Commerce has been accused of not taking up this burning issue with the Afghan government.
A report of the Federal Board of Revenue (FBR), which was submitted to the National Assembly Standing Committee on Commerce on Thursday revealed that Afghan warlords and government functionaries are extorting up to $400 per truck from Pakistani exporters on goods in transit to Central Asian Republics. Moreover the Afghan government charges $2000 to $3000 per export contract signed by Pakistani exporters.
FBR report further revealed that Pakistan is facilitating Afghan transit trade without any taxes or duties but there are a lot of requirements imposed by the Afghan authorities for transit of goods from Pakistan to Central Asian Republics, which are restricting exports. The landlocked CARs are potential markets for Pakistani goods including citrus fruits, surgical items, sports goods, leather jackets, garments, pharmaceutical items, matches, juices, edible oil, sugar and cement. Pakistani traders have to pay $2000-3000 per contract and it takes more than 15 days to complete cumbersome formalities. Similarly, the Afghan government charges $300 from Pakistani traders per truck on transit consignments through for CARs countries. Further, the exports of Pakistan rice are being charged at Afghani 90,000 per truck as octroi. Moreover, duty and taxes to the extent of 10 percent are to be deposited with Afghan customs at the time of entry of Pakistan transit goods into Afghanistan. These securities are supposed to be released after deducting 20 percent of the deposited amount and on presentation of cross border certificate to CARs. This practice is very hectic and takes too much time for refund of the duty and taxes paid. Therefore, it should be ensured that Pakistani goods in transit to CARs face no difficulties and these arrangements may be made integral part of the transit trade agreement.
The report further added that Pakistani export oriented industries are making hectic efforts to enhance exports of CARs, however, afghan government functionaries and Afghan warlords make exorbitant demands at different check posts and toll plazas. It has been estimated that a total amount of $400 per truck at different locations is extracted from them officially and un-officially. This fact has been brought in to the notice of the of the Ministry of Commerce, however, the ministry has never taken up this issue with Afghanistan at any level. Whereas, the Afghan side has taken up the issue of using Afghan trucks to take their fresh fruits directly to India in Afghan trucks on the plea of Bumper Crop, which is in contradiction to the existing ATTA. Reference is made to the latest letter of Afghan Minister of Commerce to his Pakistani counterpart, which the board has disagreed to entertain. The board proposes that fair representation should be allowed to the private sector in the forthcoming negotiations.
FBR feels that any facility asked by the Afghanistan side should be reciprocated with at least a similar facility. Facility of Gwadar Port and Ghulam Khan Customs Station as a route has been offered without getting any quality offer from the other side. In regards to the offerfor getting access to Tajikistan, Uzbekistan and Turkmenistan, the board is of the opinion that these countries are very thinly populated and their markets are located at the far end of these countries making the distance as of thousands of kilometers from Pakistani business centers. Hence they are not economically viable due to long distances. As far as the energy question is concerned, Iranian market is much closure and economically viable and Pakistan has finalised the gas supply scheme from Iran.
Under the existing arrangement in the Afghan TTA 1965, Afghan transport is not allowed beyond Peshawar. The reason is perhaps to provide our domestic rail and road transport with an opportunity to serve and earn in the business (Pakistan government charges no fee from Afghan business for using its infrastructure). The other reason could be the difference of right hand driven vehicles and left hand road traffic system in Pakistan and vise-versa in Afghanistan causing traffic hazards and accidents. The board is of the view that the existing system works smoothly and should not be disturbed by allowing Afghan left hand driven trucks on our roads and highways. It has been reported that under the new draft Afghan trucks are not only being allowed but national treatment is also being given to the Afghan drivers to establish their right to ply on our roads. This is undesirable as the country in general and NWFP in particular has suffered a lot during the last three decades when the Afghan refugees have taken place the transport business using our infrastructure and have caused massive deforestation besides having been involved in anti tourism activities. Board would, therefore, opposes allowing Afghan trucks plying on our roads.
Daily Times - Leading News Resource of Pakistan
