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ISLAMABAD: Owing to the closure of border and others problems in Afghanistan Pak-Afghan trade volume has shrunk from $2.5 billion to $1 billion, a report submitted to Parliamentary Committee on Afghanistan revealed.
“Lack of business-friendly policies, absence of proper barter trade mechanisms, border situation, 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 said.
It stated that in the absence of an operational banking structure in Afghanistan, banks refused to process third-party payments which hindered international transactions. It added that 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.
Moreover, the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) has expressed serious concerns over the “shrinking” trade volume between the two countries.
Speaking to the media, PAJCCI Chairman Zubair Motiwala said that the trade volume between the two countries should have reached $5 billion, but due to the absence of a banking system in Afghanistan, payments through third countries were 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 pertinent to mention here that hundreds of people were stranded on Saturday at Chaman Border, a key border crossing between the two countries after fighting between security forces. As a result, the border remains closed for passengers as well as trade.
