Exports to Afghanistan to reach $5bn in 3 years: Razak Dawood
The government had prioritized to document the bilateral trade between Pakistan and Afghanistan
ISLAMABAD (APP) – The Adviser to Prime Minister of Pakistan for Commerce and Investment, Abdul Razak Dawood said the government had set an export target of $5 billion to Afghanistan in next three years.
Pakistan and Afghanistan trade had three dimensions including transit trade, bilateral trade and informal trade, which not only needed to be documented but also modernized with infrastructure for smooth functioning of Pakistan and Afghanistan trade, the Advisor to Prime on Commerce said.
Replying to a question, he said that in the previous Fiscal year of 2019, Pakistan and Afghanistan transit trade worth up to $ 5.6 billion, bilateral trade volume $ 1.3 billion, which was not as much as compared to FY 2011 of worth $2.5 billion.
He informed that in the same year of 2019, informal trade between Pakistan and Afghanistan was $ 2 billion, where both sides have more prospects to enhance the bilateral trade volume.
The government had prioritized to document the bilateral trade between Pakistan and Afghanistan to evolve data sharing mechanism between both sides for ensuring the transparency mechanism, he said.
The advisor said that there was a need to improve trade facilitation through streamlined payments settlement and improved insurance mechanisms, use of bonded carriers, visa issuance, trade financing, tax collection, and documentation.
Specifically, there must be an internationally acceptable mode of payments.
The advisor said that trade could help further strengthen relations between both sides and achieving the agenda of mutual interest.
He said that Pakistan and Afghanistan are not only neighboring countries but "We have shared religion and culture values and commonalities for increasing economic and people to people connectivity between two countries.
" Pakistan shares 2200 km long border with Afghanistan, which can play a vital role to increase economic interdependence and ties in both sides.
Replying to another question, he said that in the post Pakistan and Afghanistan trade and investment forum, "I would visit Afghanistan to join the meeting Afghanistan-Pakistan Transit Trade Coordination Authority (APTTCA) to consult on future trade prospects and opportunities.
Razak Dawood said that both sides are committed to reduce the cost of doing business to enhance the bilateral trade volume between Pakistan and Afghanistan.
For reducing cost of business to increase bilateral trade volume between Pakistan and Afghanistan, "We need to focus on infrastructure issues, temporary vehicle and driver admission policy, access to third countries and also improved processing at border posts. "he said.
Replying to another question, he said that Pakistan Transit Trade Agreement (APTTA) to be reviewed in coming February, 2021 and both sides are negotiating with different stakeholders to finalize the agreement.
He said the both sides are in discussions to remove barriers and overcome hurdles impeding bilateral trade to promote the free trade between Pakistan and Afghanistan.
He said that solid recommendations were also floated at Pakistan and Afghanistan trade and interment forum, held in Islamabad Razak Dawood said the Parliamentarians, Business Community, Experts and relevant Ministries of both side s highlighted important issues and proposed solutions to the problems being faced by the Business Community on both sides.
He said that trade friendly and anti-smuggling legislation should be introduced to reduce informal economy for the benefit of both countries.
