MONITORING (SW) – A report of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) has expressed serious concerns over the “shrinking” trade volume from $2.5 billion to $1 billion between the two countries.
“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.
The Express Tribune reported that the report 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.
“The trade volume decreased due to the unregulated movement of goods, the need for unnecessary documents, difficult security checks, and poor transit facilities in both countries.”
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.
It is, however, pertinent to mention that, at the same time, opportunities have arisen for other countries, including Iran, to expand their business activities in the Afghan market
ENDS
