Kabul’s port access demand rejected
Pakistan has rejected Afghanistan’s demand for a direct access to its ports to lift cargoes imported under a transit facility on security grounds. Islamabad also believes that if this demand was fulfilled, it would eliminate local operators’ role and thus put more than 100,000 jobs on the line.
Sources in Afghan Transit Trade (ATT) said both the ministries of communications and commerce opposed this proposal coming from the Afghan government and traders.
“Actually the government believes that the involvement of Afghan transport to lift ATT cargoes could cause several problems,” said a source close to the negotiations between the two sides. “With the Afghan transport the trend of smuggling is feared to pick up while there would also be chances of influx of products which are not required.”
He said though the Afghan side didn’t define the way they wanted to lift the cargoes from Pakistani ports, it seemed that they would like their own transport to enter Pakistan, load the cargo and then get back to Afghanistan.
Afghanistan recently sought direct access to Pakistani ports to lift cargoes imported from different countries under a transit facility, through its own transport. A delegation of Afghan traders and officials recently visited Pakistan and held meetings with authorities concerned and local custom agents, who facilitated ATT from Pakistan.
One of the major demands the Afghan team made before the Customs official and CBR was to have a direct role of Afghan importers and government in transportation of ATTA cargoes from Pakistan to their final destination in Afghanistan. “There are also concerns raised from local Customs agents, who facilitate ATT transportation from the ports here to Afghanistan,” said the source. “Such process involves more than 90,000 people to generate their employments and it’s a proper regulated business in Pakistan. If the government allows the Afghan transport, it means an end to their role and business.”
He said the Pakistani side was more interested in making the existing ATT system more transparent and the recent meeting with the Afghan delegation was part of the same objective.
The country in late 60s entered into an Afghan Transit Trade Agreement (ATTA) with Afghanistan, which allowed goods bound for the landlocked neighbour to transit Pakistan free of duty.
Initially the trade was restricted to a few products, as it carried a negative list of more than 50 products, on fears of smuggling, which could trigger a flood of smuggled goods into the local market.
However, rising demand in the neighbouring country has convinced the authorities to remove most products from the negative list, which has now been reduced to four, which include cigarettes, cigars, automobile parts and right-hand drive vehicles.
“Currently, Pakistan and Afghanistan are drafting an agreement to enhance ATT with focus on volume increase and minimum documentation requirements,” said the source. He said the agreement was due to be signed within next few weeks and it required a nod from the high-ups of both sides.
“The proposed agreement offers benefits to the ATT with incentives from both sides of the border, which would expedite trade process and ultimately cut transportation cost of consignments,” he added.
Imports under ATTA started increasing some three years back as construction activity picked up in the landlocked country. The imports under ATTA crossed almost Rs30bn by the end of June 2006.
Sources in Afghan Transit Trade (ATT) said both the ministries of communications and commerce opposed this proposal coming from the Afghan government and traders.
“Actually the government believes that the involvement of Afghan transport to lift ATT cargoes could cause several problems,” said a source close to the negotiations between the two sides. “With the Afghan transport the trend of smuggling is feared to pick up while there would also be chances of influx of products which are not required.”
He said though the Afghan side didn’t define the way they wanted to lift the cargoes from Pakistani ports, it seemed that they would like their own transport to enter Pakistan, load the cargo and then get back to Afghanistan.
Afghanistan recently sought direct access to Pakistani ports to lift cargoes imported from different countries under a transit facility, through its own transport. A delegation of Afghan traders and officials recently visited Pakistan and held meetings with authorities concerned and local custom agents, who facilitated ATT from Pakistan.
One of the major demands the Afghan team made before the Customs official and CBR was to have a direct role of Afghan importers and government in transportation of ATTA cargoes from Pakistan to their final destination in Afghanistan. “There are also concerns raised from local Customs agents, who facilitate ATT transportation from the ports here to Afghanistan,” said the source. “Such process involves more than 90,000 people to generate their employments and it’s a proper regulated business in Pakistan. If the government allows the Afghan transport, it means an end to their role and business.”
He said the Pakistani side was more interested in making the existing ATT system more transparent and the recent meeting with the Afghan delegation was part of the same objective.
The country in late 60s entered into an Afghan Transit Trade Agreement (ATTA) with Afghanistan, which allowed goods bound for the landlocked neighbour to transit Pakistan free of duty.
Initially the trade was restricted to a few products, as it carried a negative list of more than 50 products, on fears of smuggling, which could trigger a flood of smuggled goods into the local market.
However, rising demand in the neighbouring country has convinced the authorities to remove most products from the negative list, which has now been reduced to four, which include cigarettes, cigars, automobile parts and right-hand drive vehicles.
“Currently, Pakistan and Afghanistan are drafting an agreement to enhance ATT with focus on volume increase and minimum documentation requirements,” said the source. He said the agreement was due to be signed within next few weeks and it required a nod from the high-ups of both sides.
“The proposed agreement offers benefits to the ATT with incentives from both sides of the border, which would expedite trade process and ultimately cut transportation cost of consignments,” he added.
Imports under ATTA started increasing some three years back as construction activity picked up in the landlocked country. The imports under ATTA crossed almost Rs30bn by the end of June 2006.
