Afghan transit trade soars to Rs25.7 billion
By Parvaiz Ishfaq Rana
Thursday, 22 Jan, 2009 | 02:26 PM PST |
KARACHI: Afghan Transit Trade (ATT) has recorded 71.45 per cent growth at Rs25.763 billion during first six months (July-Dec) of the current fiscal year over the corresponding period last year when it stood at Rs15.026 billion.
According to official figures, there had been an increase of Rs10.737 billion in imports of goods through ATT during this period.
Much of the growth was noted in items which have little or no demand in the Afghan market, prompting concerns of smuggling.
Import of machinery and electronic items registered the highest growth of up to 192.31 per cent at Rs4.027 billion against Rs1.377 billion over last year.
An underdeveloped and war-torn country having no demand for modern electronic gadgets, there is a sustained growth in import of such goods. Similarly, Afghanistan having no basic infrastructure facilities and road networks could not import machinery where industry is almost non-existence.
As far as import of electronic items is concerned refrigerators, air-conditioners, vacuum cleaners, TV sets, DVD players etc are being largely imported and one cannot understand who their customers are in a country, which has no electricity.
Similarly, there is a tremendous growth of 39.99 per cent in import of iron and steel and other metals under ATT at Rs746.56 million from Rs533.28 million recorded in the same period last year.
Import of fabrics under ATT also increased by 28.90 per cent at Rs5.143 billion during July-Dec period as against Rs3.990 billion recorded in the same period last fiscal. Such a large quantity of fabrics imports under ATT is not justified because Afghan culture is still far away from modern exposure and has no such market demand.
Foodstuff imports under ATT increased by 32.31 per cent during first six months of current fiscal at Rs6.227 billion compared to Rs4.706 billion last year.
During July-Dec period vehicles worth Rs933.70 million were imported compared to Rs433.12 million earlier registering a growth of 78.37 per cent.
Other items, including household goods, tiles, paper, chemicals, plastic etc worth Rs9.684 billion were imported during period under review as against Rs3.985 billion during last fiscal.
Official sources disclosed that a new agreement on ATT is going to be negotiated next month. The present agreement only allows up to 10 per cent of ATT cargo examination but it is being suggested that the same should be increased to 50 per cent to discourage smuggling under its cover.
Secondly, it is also being recommended by trade and industry that the ATT should be put up before the National Assembly prior to its approval, because the last ATT agreement was signed under pressure and it created lot of problems for the domestic industry.
The customs intelligence wing, which was made ineffective by the Shaukat Aziz government should be reactivated to curtail rampant smuggling under the ATT cover. Inside sources disclosed that presently the Appraisement Intelligence Branch is poorly equipped and the government should pump in some funds to improve their working by giving them proper equipments.
The reward system to customs officials on tracing out mis-declaration or under-invoicing was also done away by the previous government. This used to be a boon for honest officers, who avoided illegal gratifications.
Even today a large number of ATT consignments in containers do not leave city jurisdiction, customs sources told Dawn. They further said there were yards where such containers are taken and after removing goods are held back for a week to show that a box has traveled up to Pak-Afghan border.
But some smart players, who do not want tamper with the seals of containers, only remove nuts and bolts of its doors and after removing goods fix them back and allow it to be taken (empty) up to Pak-Afghan border.
Customs sources requesting anonymity disclosed that it is an open secret that ATT official seals are prepared in a narrow lane opposite Customs House and are also being openly used by unscrupulous people involved in such illegal trade or smuggling.
To prevent such cases it is being suggested that the examination of ATT goods should be done at Karachi and not at Pak-Afghan border.
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