India finds route to Kabul via Pakistani seaports

[sparklingway]

India finds route to Kabul via Pakistani seaports​

By Shahbaz Rana
July 20, 2010

ISLAMABAD: Pakistan has allowed India to sell its products to Afghanistan and up to Central Asia via Pakistani seaports, reveals the commerce secretary. But experts fear that the decision may allow New Delhi to outpace Islamabad in its industrial exports to Kabul, which is a gateway to the land-locked Central Asia.

In an interview with The Express Tribune, Commerce Secretary Zafar Mahmood said that under the Pak-Afghan Transit Trade Agreement, Afghanistan can import Indian products through the sea route.

He said the facility was already available but now Afghanistan’s trucks would be allowed to load these products directly from the seaports.

Zafar Mahmood was speaking for the first time after Islamabad and Kabul signed on Sunday a new transit trade treaty in the presence of US Secretary of State Hilary Clinton. It is believed that the US pressured Pakistan into giving trade concessions to Afghanistan.

Under the existing trade arrangement, Afghanistan’s trucks were not allowed to move beyond Peshawar to carry Afghanistan-bound goods. However, under the new arrangement, yet to be ratified by the cabinet, Afghanistan’s trucks have been permitted to go to Pakistani seaports and Wagah border.

Naeem Bukhari, an expert in trade affairs, said that India got the edge by virtue of the new agreement, as its industrial hub was in Mumbai and it would export its goods to Afghanistan, which is a gateway to the Central Asia, via Pakistani ports. He said India now will have formal trade with Afghanistan and Central Asia and it would outpace Pakistan’s industrial exports to these countries.

The commerce secretary said that India would not be allowed to sell its products to Afghanistan via the Wagha border till the normalisation of bilateral relations. In Bukhari’s opinion, by not allowing India to use the Wagha border Pakistan only secured its perishable exports to Afghanistan. He added that Islamabad ceded ground to New Delhi by extending it sea to land route for its industrial exports to Kabul.

The secretary said that the agreement was a win-win situation for both the countries. “Pakistan would be able to effectively check smuggling and Afghan truckers would get a boost on top of having opportunity of trading with India”.

He said still it was not a formal agreement but a record note of decisions, which were taken in the meeting. “It has more moral value than a legal status. However, it ends the process of negotiations.”

He said keeping in mind the broader principles agreed upon between the two states the details will be incorporated, which would be ratified by the cabinet. He said the final agreement would be signed soon.

Zafar Mahmood said that the major achievement was that all Afghanistan-bound imports on Karachi port will only be cleared after taking bank guarantees equivalent to the import duties on the imported items from the importer or his clearing agent. He said these guarantees would be refunded only after Pakistan satisfied itself that the consignment had reached its destination. He said in case of doubt Pakistan could forfeit the financial guarantees.

Published in The Express Tribune, July 20th, 2010.

 

[indushek]

Well some good news for India here. I hope soon the Wagah Border is also opened up!!!

 

[TaimiKhan]

Hope this facility is withdrawn asap or discouraged through different means, neither land or sea route are allowed.

India has made the Chahbahar port for this very same purpose, so let them have that route and use their that port.



This will create further problems for us

 

[indushek]

Hope this facility is withdrawn asap or discouraged through different means, neither land or sea route are allowed.

India has made the Chahbahar port for this very same purpose, so let them have that route and use their that port.



This will create further problems for us

This route is going to be used only for trade and also the trucks that are going to load the goods will be of Afghanistan, India will just drop the goods at the port and leave. The ships involved would be of foreign nations as seen in maritime trade, how can this setup cause any problem for you??

 

[chachachoudhary]

Hope this facility is withdrawn asap or discouraged through different means, neither land or sea route are allowed.

India has made the Chahbahar port for this very same purpose, so let them have that route and use their that port.



This will create further problems for us

What exact problems do you have in your mind?

 

[somebozo]

Due to sanction on iranian energy and shipping business, India is very much discouraged to use Chahabar port or any other activity which enables a potential of IRISL to enaged in smuggling. Despite the new found cozy releationship, Obama was stern in warning Indians not to assist Iran in bypassing sanctions. Also the port of Cahabar is not yet complete and Iranians seem to be paused at the moment. They havent recovered from the tactical shock of IPI which may turn into IPC. Once that happens, Iranians will simply have to "behave" themselves.

 

[RobbieS]

I think India should offer Pak land transit to Nepal and BD in exchange for the land route to Afghanistan. We cannot keep asking for land access to Afghanistan without offering the same ourselves to Pak.

 

[TaimiKhan]

This route is going to be used only for trade and also the trucks that are going to load the goods will be of Afghanistan, India will just drop the goods at the port and leave. The ships involved would be of foreign nations as seen in maritime trade, how can this setup cause any problem for you??

What exact problems do you have in your mind?

Smuggling, as lot of stuff intended for Afghanistan gets reverted back to Pakistan through illegal ways, which undermine the local industry as well as causing billions of revenues in losses.

Even now there are certain Indian origin products meant for Afghanistan, which are now found in the Pakistani markets, cheap compared to local products or products imported, thus both things happen, local industries also suffer as well as revenue loss to Pakistan govt.

 

[ice_man]

well we acheived a SORT OF A TACTICAL KNOCKOUT!!

people may ask how? here is the answer:

FROM land route india loads it onto the trucks off loads at wagah reloads onto the afghanistan trucks & they are gone less costly & within 24 hours offloading & reloading occurs!

NOW:

indian trucks carry it to indian ports load them onto ships that sail to pakistan in 2 days then pakistani ports offload them (GIVING MUCH NEEDED ACTIVITY AT OUR PORTS)!! reload them onto afghan trucks which head out from SINDH not WAGAH(punjab)



SO THIS WILL ICREASE COST AS WELL AS TIME OF INDIAN GOODS!!! enabling pakistan to stay competitive

 

[KS]

Smuggling, as lot of stuff intended for Afghanistan gets reverted back to Pakistan through illegal ways, which undermine the local industry as well as causing billions of revenues in losses.

Even now there are certain Indian origin products meant for Afghanistan, which are now found in the Pakistani markets, cheap compared to local products or products imported, thus both things happen, local industries also suffer as well as revenue loss to Pakistan govt.

Well there is a saying that roughly transalates as "U needn burn down the house to kill a mosquito"..hope the analogy is well taken.

 

[third eye]

well we acheived a SORT OF A TACTICAL KNOCKOUT!!

people may ask how? here is the answer:

FROM land route india loads it onto the trucks off loads at wagah reloads onto the afghanistan trucks & they are gone less costly & within 24 hours offloading & reloading occurs!

NOW:

indian trucks carry it to indian ports load them onto ships that sail to pakistan in 2 days then pakistani ports offload them (GIVING MUCH NEEDED ACTIVITY AT OUR PORTS)!! reload them onto afghan trucks which head out from SINDH not WAGAH(punjab)



SO THIS WILL ICREASE COST AS WELL AS TIME OF INDIAN GOODS!!! enabling pakistan to stay competitive

Two things .

1. India still gets the land route thru Pak.

2. Who pays for all these costs ? India or the buyer ? All this also generates revenue inland in India.

 

[EjazR]

India alongwith the rest of the world always had facilities to use KArachi port for AFghanistan. This comes under International law for the right of land-locked countries for sage passage of their goods. Infact, the Wagah border trade also comes under that.

The reason for the smuggling isthat Afghanistan charges less duties on the same goods that Pakistan charges. And the new pact kindof firms up the way this happens.

But in any case, the bestway would be for PAkistan to lower duties so that smuggling becomes unprofitable.

 

[BATMAN]

A week ago my post suggesting declining tranist aid to all india, afghanistan and us was deleted by the mod. (sparkling way)
how come Taimi Khan suggesting the same is not deleted?
I needed to know is it allowed to discuss on this touchy matter to some?
I also wonder what was the logic to moderate all discussion regarding transit to india via Pakistan until the agreement is signed?
Do we see hints!!!!?????

 

[vsdoc]

Wow! Are you suggesting management here are not college kids for the most part, but actually grizzled veterans of the establishment?

I too have been wondering.

Do you think both RAW and ISI agents are members here? Are our posts and IPs being monitored? Is there the chance of receiving a visitor on our doorsteps late at night? Either knocking on our door or simply breaking it down?

Will the good e-warriors out here get some medal of recognition by their respective governments for services to the nation rendered? Maybe a fast-track into the foreign service?

Cheers, Doc

 

[Tshering22]

Why don't we directly use the port we made in Iran for Afghanistan? What's the point of such pointless confidence-building when it is reciprocated with aggression and mysterious non-state actors?

Indian diplomacy needs a serious overhaul.