Pakistan bans export of 212 items to Afghanistan

ISLAMABAD: Pakistan’s Ministry of Commerce has imposed restrictions on the export of 212 items from Pakistan to Afghanistan under the Afghan Transit Trade Agreement.

Under to the Afghan Transit Trade Agreement, the transportation of 212 items from Pakistan to Afghanistan will not be allowed. The ministry has also issued a Statutory Regulatory Order (SRO) in this regard.

As per the SRO, restrictions have been imposed on various types of items, including 17 types of fabrics, tires for all types of vehicles, tea leaves, cosmetics, and various types of toilet articles.

Furthermore, items such as nuts, dried and fresh fruits, fridges, refrigerators, air conditioners, juicers, and mixers will also not be allowed to be sent to Afghanistan.

Sources said that the transit trade between Pakistan and Afghanistan has had profound and negative effects on Pakistan’s economy, with Afghan authorities making inaccurate statements about the prices of items related to transit trade.

As a result, a significant difference has emerged between reported and actual values of goods.

Subsequently, these items are illegally entering Pakistan, resulting in a 67% increase in Afghan income from transit trade.

The value of these items illegally entering Pakistan reached up to $6.71 billion in February 2022-23. Last year, these incomes were $4 billion.

The sources said that the Afghan Transit Trade adversely affects Pakistan’s small and medium-scale industries and has had negative impacts on Pakistan’s economy.

Aligning Afghan Transit Trade with internationally recognized laws is essential for Pakistan’s economic recovery, the sources said.

Afghan transit trade leaving a dent on Pakistan’s economy

Pakistan Unveils 10% Processing Fee on Afghan Imports in Bid to Curb Smuggling

Earlier on Tuesday, Pakistan announced the imposition of a 10 per cent processing fee on a range of items imported from Afghanistan under a transit trade agreement, in a move widely seen as an effort to curb the illegal entry of goods from its neighboring state.

Last month, the government initiated a vigorous crackdown on smugglers and black market operators, aiming to shore up the nation’s faltering economy and reduce the prices of essential commodities in the market.

This anti-smuggling operation effectively halted the outflow of foreign currencies from Pakistan, contributing to a partial stabilization of its value and alleviating inflationary pressures in the economy.

A customs department notification cited the “powers conferred by section 18D of the Customs Act, 1969 (IV of 1969),” stating, “the Federal Government is pleased to impose a processing fee at the rate of 10 percent ad valorem on the following Afghan transit commercial goods imported into Afghanistan in transit via Pakistan.” The listed items included confectionery and chocolates, footwear, mechanical and electrical machinery, blankets and home textiles, and garments, Arab News said.

According to Dawn, customs officials suspect that some goods, though intended for Afghanistan, are covertly redirected back into Pakistan, prompting this latest measure.

However, the official notification clarified that goods declarations filed before the decision on Tuesday would be exempt from the processing fee.