KABUL/ISLAMABAD (SW) – In an economic summit on Friday in Pakistan, Prime Minister Shahbaz Sharif has stated that the country is ready to negotiate “preferential” trade with Afghanistan, and voting on preferential trade agreements continues.
Simultaneously, officials at the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) say that after voting and resolving several bilateral issues, there would be preferential trade between the two countries in the future.
Naqibullah Safi, the Chief Executive Officer of PAJCCI, says that if considering similar preferred items from Afghanistan and Pakistan, the preferential trade would be important and beneficial for both parties.
He adds, “Tariff and customs issues are perennial; this type of trade is very important and under discussion, and there are several issues that if resolved, we will reach an agreement.”
Mohammad Mukhles, advisor to the Pakistan-Afghanistan Joint Chamber of Commerce and Industry, also says that based on the latest meeting between officials from the two countries on March 26, 2024, it has been decided to preferentially trade 10 items between the two nations.
“Discussions have been ongoing on this type of trade for the past year; however, fortunately, in the last meeting on March 26, preferential tariffs for 10 items, including eight agricultural items and two industrial products, were considered between the two countries,” he added.
Officials at the PAJCCI advocate for preferential trade to reduce transportation costs, decrease commodity prices in the market, increase mutual benefits, and promote bilateral trade growth.
However, economic experts, while acknowledging the profitability of preferential trade, suggest that the Islamic Emirate should obtain strong commercial guarantees from Pakistan if an agreement is reached on this type of trade. They believe that experience has shown that “Pakistan is not very committed” to commercial agreements with Afghanistan.
Qais Mohammadi, an economic expert, says, “If this type of trade is implemented, it will enhance trade between the two countries; they should compete for the Afghan market and provide incentives for Afghanistan. Afghanistan should obtain strong guarantees from Pakistan for this.”
Over the past one year, following increased restrictions by the Pakistani government on Afghan traders, transit of many Afghan goods through Pakistan has shifted to trade routes with Iran.
