Busniess Reporter
PESHAWAR: Businessmen from Pakistan and Afghanistan have termed the three-month closure of cross-border trade between the two neighbouring countries as disastrous for regional economy, urging authorities to review the decision and allow resumption of commercial activities for benefit of millions of affected people.
In a joint press statement issued here on Saturday, Senior Vice President of Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), Zia-ul-Haq Sarhadi, And Executive Member Sarhad Chamber of Commerce and Industry (SCCI), Former SVP Sarhad Chamber of Commerce and Industry (SCCI) Engr, Manzoor Elahi and Ahmad Shah Yarzada, Board Director PAJCCI Afghan chapter
said that irreparable losses caused due to closure of trade between Pakistan and Afghanistan has affected the lives of millions of people due to its negative impact on the economy of the region.
“The ground reality is that hundreds of millions of people in the region live below the poverty line, and closure of bilateral and transit trade has only added fuel to the fire by deepening their hardships,” observed members of the business communities of Pakistan and Afghanistan.
It is a known and established fact that both the business community of Afghanistan and Pakistan are on the same page and they wanted to expand their business with each other both in terms of bilateral and transit trade, but unfortunately the traders, exporters, farmers are the innocent victims of the policy decision.
Trade should be kept separate from politics, as bilateral and transit trade sustains millions of poor families across the region. However, the continued suspension of trade has deprived countless households of their livelihoods, making it increasingly difficult for parents to provide food and education for their children, they added.
There are over 10,000 containers of Afghan Transit trade cargo stranded inside Pakistan exposed to heavy demurrage and detention charges for the past three months.
Similarly there are thousands of trucks of Pakistan transit cargo from Central Asia stranded inside Afghanistan.
The current situation is not bearable for the business community of both Afghanistan and Pakistan, they remarked.
Sharing data of losses incurred by both Afghanistan and Pakistan due to the closure of trade, the businessmen said Afghanistan is the nearest market for Pakistani products with advance payment before delivery of goods, means a market which pay full payment in advance.
The export volume of Pakistan to Afghanistan is USD 1.5 billion per annum. Since the trade stopped for the past 3 months it has inflected loss of USD 375 million dollar to Pakistani exporters.
The export volume of Pakistan via Afghanistan to central Asia is USD 900 million per annum. The closure of the trade caused losses of USD 225 million to Pakistan exporters, they added.
The import of commercial goods from Central Asia to Pakistan was very cost effective, but the closure of trade caused considerable price in increase in market due to supply line disturbed.
Pakistan lost billions of rupees in terms of import customs duty, taxes for imports cargo from Afghanistan and Central Asia, the businessmen claimed.
Referring to use of Karachi ports for Afghan transit trade, they said Afghanistan import volume as transit via Karachi is around 40,000-45,000 containers per annum.
The average transit cost for each container under the heads of transport, insurance guarantee, terminal handling charges, port charges, clearing agents, forwarders, transit facility charges & etc is USD 4,000.
There are over 10,000 containers of transit cargo stranded in Pakistan and the above cargo is exposed to heavy demurrage and detention charges. Each single container is charged around USD 120 on daily basis.
Afghan importers are faced with loss of USD 1.2 million as penalty charges on daily basis for the demurrage, detention. The losses for the past 3 months is USD 108 million.
Afghanistan export volumes to Pakistan is USD 800 million per annum closure of the trade has inflected loss of USD 200 million to Afghan exporters.
Afghanistan export to India Via Wagah is around USD 300 million per annum. While due to closure of the trade, transit has inflected loss of USD 75 million USD to Afghanistan exporters.
Afghanistan lost billions of Afghani Rupee in terms of import customs duties & taxes due to stoppage of the transit cargo inside Pakistan.
The demand of traders, farmers, importers, exporters and all the related sectors across the border both from Pakistan & Afghanistan is to take a review the current disastrous situation and reopen the trade, transit for the stranded cargo on the pipeline.
The businessmen from both the countries said the re- export of the transit trade cargo back to the port of origin is very complex and costly procedure and will further hurt the business community.
They reiterated their request addressed to both Afghanistan and Pakistan authorities to review tough stands and help allow the trade/transit in the region which is helpful for the region in terms of poverty and security.
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