India-Afghan transit trade issue for composite dialogue
Granting land route facility to India for its trade with Afghanistan could be discussed only in the bilateral composite dialogue, officials of the Ministry of Commerce said here on Thursday. In a briefing to the National Assembly Standing Committee on Commerce, Commerce Secretary Salman Ghani said that granting land route transit trade facility to India through Wagah was beyond the jurisdiction of the commerce ministry.
It is out of question for us. He said that although the original Afghan Transit Trade Agreement had allowed India to export its goods to Afghanistan through Pakistan, an additional clause was inserted after the 1965 Pakistan-India war in the agreement, barring the use of Pakistani territory for Indian exports to Afghanistan.
The committee was also informed that USAID was undertaking a study for formalisation of informal trade between the two countries and it was expected to be completed by June next year. The commerce secretary said that smuggling could be checked only through policy instruments and upgradation of technology for checking the trade. Pakistan has forwarded proposals to the Afghan side to equalise duty structure on items that are smuggled back into Pakistan, the committee was informed.
The committee said that under the transit trade agreement Pakistan could ban movement of goods only for security reasons. The committee was informed that the Afghan side was demanding that their trucks be allowed to carry goods from Karachi to Afghanistan. Pakistan wants to grant this facility to Afghanistan as it would also allow movement of our trucks to cross Afghanistan, the committee was informed. This would eventually allow Pakistan to transport its goods to Central Asia, Mr Ghani said. At present, due to absence of any formal regulations, Afghan authorities and private players in Afghanistan demand ransom and bribery from trucks carrying Pakistani goods across Afghanistan.
An average of $400 is paid by each truck to cross Afghanistan, the commerce secretary said. The committee asked the government to take stern notice of smuggling from Afghanistan, protect Pakistani trucking industry and ensure Pakistan s transit access to Central Asia under the agreement. The committee recommended that opening of a letter of credit be made mandatory for all Afghan importers through Afghan banks to check smuggling of transit goods and that the duty structure of both countries be harmonised to discourage smuggling.
Granting land route facility to India for its trade with Afghanistan could be discussed only in the bilateral composite dialogue, officials of the Ministry of Commerce said here on Thursday. In a briefing to the National Assembly Standing Committee on Commerce, Commerce Secretary Salman Ghani said that granting land route transit trade facility to India through Wagah was beyond the jurisdiction of the commerce ministry.
It is out of question for us. He said that although the original Afghan Transit Trade Agreement had allowed India to export its goods to Afghanistan through Pakistan, an additional clause was inserted after the 1965 Pakistan-India war in the agreement, barring the use of Pakistani territory for Indian exports to Afghanistan.
The committee was also informed that USAID was undertaking a study for formalisation of informal trade between the two countries and it was expected to be completed by June next year. The commerce secretary said that smuggling could be checked only through policy instruments and upgradation of technology for checking the trade. Pakistan has forwarded proposals to the Afghan side to equalise duty structure on items that are smuggled back into Pakistan, the committee was informed.
The committee said that under the transit trade agreement Pakistan could ban movement of goods only for security reasons. The committee was informed that the Afghan side was demanding that their trucks be allowed to carry goods from Karachi to Afghanistan. Pakistan wants to grant this facility to Afghanistan as it would also allow movement of our trucks to cross Afghanistan, the committee was informed. This would eventually allow Pakistan to transport its goods to Central Asia, Mr Ghani said. At present, due to absence of any formal regulations, Afghan authorities and private players in Afghanistan demand ransom and bribery from trucks carrying Pakistani goods across Afghanistan.
An average of $400 is paid by each truck to cross Afghanistan, the commerce secretary said. The committee asked the government to take stern notice of smuggling from Afghanistan, protect Pakistani trucking industry and ensure Pakistan s transit access to Central Asia under the agreement. The committee recommended that opening of a letter of credit be made mandatory for all Afghan importers through Afghan banks to check smuggling of transit goods and that the duty structure of both countries be harmonised to discourage smuggling.
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