Pakistan Border Trade

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Afghanistan, Iran, Russia: Country outlines process for barter trade​

• Govt tries to manage balance of payments crisis amid record inflation

Reuters
June 3, 2023

KARACHI: Pakistan has passed a special order to allow barter trade with Afghanistan, Iran and Russia for certain goods, including petroleum and natural gas, the Ministry of Commerce said on Friday.

Left with barely enough foreign exchange reserves to cover one month’s imports, Pakistan’s government is desperately trying to manage a balance of payments crisis and curb inflation after it hit a record of nearly 38% last month.

The government order, called the Business-to-business (B2B) Barter Trade Mechanism 2023 and dated June 1, lists goods that can be bartered. State and privately owned entities would need approval to participate in the trade mechanism.

 

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First truck of Russian goods arrives in Pakistan​

The Express Tribune
Jul 10, 2023

ISLAMABAD: The first truck carrying export goods from Russia has successfully arrived in Pakistan, marking an important milestone under the Transport International Routes (TIR) Convention.

The road transport agreement between Pakistan and Russia holds great importance in the current geographical and economic context, according to Federal Minister of Communications Asad Mehmood. He highlighted the agreement’s potential as a catalyst for boosting Pakistan’s economy and facilitating expanded trade.

The Russian Embassy confirmed the successful arrival of goods from Russia under the TIR Convention, signalling a positive trajectory in Pakistan-Russia trade. By May 2023, trade between the two countries had witnessed a nearly 50% increase, surpassing $760 million. This milestone represents a crucial step toward strengthening mutual cooperation.

Mehmood reiterated the significance of the road transport agreement between Pakistan and Russia, which was signed during his visit to Moscow in November 2022.

 

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Afghan Taliban criticises closure of main border crossing with Pakistan​

Reuters

KABUL: The Afghan Taliban criticised the closure of its main border crossing with Pakistan this week after clashes between security forces, saying the halt in trade would see heavy losses for businesses.

The busy Torkham border crossing closed on Wednesday after Pakistani and Afghan Taliban forces started firing at each other, according to local officials.

“The Islamic Emirate of Afghanistan deems the closure of Torkham gate and opening of fire on Afghan security forces by the Pakistani side contrary to good neighbourliness,” Taliban administration’s Ministry of Foreign Affairs said in a statement late on Saturday.

The statement said the incident had started after Pakistani security forces fired at Afghan Taliban forces fixing an old security outpost near the border.

Pakistan’s foreign office did not immediately respond to request for comment.

Hundreds of trucks laden with goods have been halted and traders have complained that trade is affected.

“The closure of Torkham gate can adversely affect bilateral and regional trade, and cause trade and financial losses to common mercantile class on both sides,” the statement said, adding many travellers were also stuck on each side of the border.

The Torkham border point is the main point of transit for travellers and goods between Pakistan and landlocked Afghanistan.

Disputes linked to the 2,600 km (1,615 mile) border have been a bone of contention between the neighbours for decades.

Pakistan has been facing issues of its own, and recently saw its army chief vowing to uplift the economy through targeted action on smuggling and tax evasion.

 

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Pakistan concerned about 'misuse' of transit trade deal with Afghanistan: FO​

• FO Spokesperson Mumtaz Zahra Baloch says Pakistan will contact Afghan authorities to resolve the problem

 

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Need for erecting more gates on Taftan border crossing discussed​

Recorder
September 16, 2023

 

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Pakistan, Iran explore trade expansion​

Teams present proposals to improve railway link, banking system, and transportation

APP
September 29, 2023

The Pakistan-Iran Joint Border Trade Committee convened on Thursday to deliberate on border issues, bilateral trade expansion, enhancements in immigration procedures, and transportation. The daylong meeting took place in the Iranian border town of Mirjaveh, adjacent to Taftan in the Chagai district of Balochistan.

The committee discussed various aspects, including the movement of people at the Pakistan-Iran border, transportation of goods, bilateral trade, and measures to combat smuggling, as detailed in a news release issued after the meeting.

Delegations from both countries presented a range of proposals aimed at enhancing the railway link, improving the banking system, and advancing transportation for the benefit of bilateral trade between Pakistan and Iran.

The delegation expressed optimism that the meeting would prove highly beneficial for the region, particularly for businessmen on both sides of the border.

Earlier, the Iranian delegation, led by the Director General of the Transit and International Transport Department at the Ministry of Roads and Urban Development, extended a warm welcome to the Pakistani delegation.

The Pakistani delegation included Taftan Collector of Customs Appraisal Naveed Iqbal, Deputy Collector Usman Aziz, Superintendent Ahad Durrani, and representatives from the business community, transportation sector, banking sector, as well as the Ministry of Immigration and Foreign Affairs.

 

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Fee slapped on Afghan transit trade​

Mubarak Zeb Khan
October 4, 2023

ISLAMABAD: In a significant move to curb the illegal entry of goods into the country, the government announced on Tuesday a 10 per cent processing fee on items imported under the Afghan transit trade agreement.

The decision — which aims to deter smuggling and ensure proper taxation — comes at a time when the government has ordered all illegal immigrants, including 1.73 million Afghan nationals, to leave the country or face expulsion.

According to the Customs Department notification (SRO1381 of 2023), the fee, calculated as 10pc ad valorem based on the original value of goods, must be paid in advance during the declaration process for Afghan transit commercial goods entering Afghanistan via Pakistan.

The items affected include confectioneries, chocolates, footwear, various machinery, blankets, home textiles, and garments.

10pc processing charges to be paid in advance at time of declaration for commercial goods imported via Pakistan

However, the notification stipulates that goods declarations filed before Oct 3 will not be subject to these new provisions.

Customs officials suspect that certain goods, though destined for Afghanistan, are clandestinely rerouted back into Pakistan, prompting this latest measure.

An official noted that cargo volume has surged recently. “Despite Afghanistan’s transit trade demand being $1bn to $2bn per year, we have observed a significant rise. This fee is expected to deter those involved in illicit trading,” the official said.

Under the transit trade agreement, Pakistan has the right to impose processing fees on cargo, the official said.

Pakistan has previously extended economic support to Afghanistan. Since the Taliban’s takeover of Kabul on Aug 15, 2021, Islamabad provided tax and duty exemptions on various commodities, including fruits and vegetables. Besides, from July 6 last year, the government also allowed the trade of all products via land routes to Kabul in rupees.

To combat smuggling, Customs has adopted several policies under the Customs Act, 1969. Essential commodities like wheat, flour, sugar and urea have been added to an essential commodities list to bolster the legal framework.

Besides, the Customs Act’s jurisdiction has been expanded to 10km from the original 5km near the borders with Afghanistan, India and Iran, and to 50km near specific Balochistan districts.

The government has also appointed the chief collector of customs (Balochistan) to address smuggling issues and liaise with law enforcement agencies.

 

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First Pakistan-Kazakhstan TIR trucks exit Torugart port​

By Mia Shah
Nov 2, 2023

XINJIANG - The first trucks carrying export goods recently departed from Pakistan using the Transport International Router (TIR) system. They exited via the Torugart border crossing in Xinjiang before arriving Kazakhstan.
Loaded with mango juice, small household appliances, and other goods, the trucks traveled through Pakistan, China, Kyrgyzstan, and Kazakhstan, making it the first TIR service in China spanning four countries.

With TIR, an international customs facilitation system that significantly enhances the efficiency and security of trade, there is no need for drivers and goods to be stranded at borders for days, slowing down operations by unloading and reloading goods from one truck to another.

In order to ensure the smooth progress of this transportation business, Khunjerab and Torugart Customs fully utilize the flexible advantages of TIR, effectively leverage the frontier advantages of the "Belt and Road" westward opening, and dynamically track the trucks. They also established a dedicated team to offer 24/7 one-stop management services.

"On the basis of supervising imported and exported goods, we conducted a comprehensive analysis of the TIR transportation mode and developed a customized customs clearance plan.

This plan greatly reduces the time required for enterprises to clear customs and improves the efficiency of customs clearance process," explained an official from Torugart Customs.

 

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An agreement on trade and transit was signed between Afghanistan, Uzbekistan, and Pakistan.

The Ministry of Industry and Commerce said in a statement that an agreement on trade and transit was signed in the tripartite meeting between Afghanistan, Uzbekistan, and Pakistan.

According to the ministry, the agreement was signed between the acting Minister of Industry and Commerce, Nooruddin Azizi, Uzbekistan Deputy Prime Minister Jamshid Khodjaev, and Gohar Ejaz, Minister of Trade and Commerce of Pakistan.

Based on the statement, it was decided in the meeting that the technical groups of the three countries will start their work in the area of trade and transit next week and share the results before the signing of the final agreement by the three parties.

 

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Border trade halts after Pakistan imposes restrictions on Afghans​

AFP
November 21, 2023

PESHAWAR: Trade was halted Tuesday at border crossings between Pakistan and Afghanistan after Islamabad imposed stricter immigration rules on commercial vehicle drivers and crew, officials said.

The Pakistan government has launched a massive operation against undocumented Afghans living in the country, alongside a crackdown on cross-border smuggling.

Nearly 350,000 Afghans – many born in refugee camps in Pakistan – have returned voluntarily or been deported since the order to leave was issued last month.

On Tuesday, Pakistan said it would no longer allow Afghans to enter unless they had valid passports and visas, ending their ability to visit using only their national identity cards or driver’s licences.

“In response, the Afghan government has also stopped the entry of all types of commercial vehicles from the other side,” said a Pakistani official at the northern Torkham border, asking not to be named.

Afghan border official Esmatullah Yaqoob said officials “have been instructed to also block (Pakistani) vehicles coming from their side”.

At the southern Chaman border, a sit-in protest against the new rules prevented traders from crossing.

The row is one of several thorny issues that have grown between Kabul and Islamabad since the Taliban returned to power in Afghanistan in August 2021.

Pakistan says the deportations are to protect its “welfare and security” after a sharp rise in attacks, which the government blames on militants operating from Afghanistan, and a lack of cooperation from the Taliban government.

The United Nations on Tuesday said as of November 11, more than 320,000 people had returned to Afghanistan.

Pakistan border officials put the latest figure at more than 345,000.

Afghan authorities are struggling to cope with the influx of returnees – including many who have never set foot in the country.

The tightening of trade rules has also affected Afghanistan-bound containers at Karachi port as authorities demand more tax and duty payments.

The Pakistan government says it loses millions of dollars in taxes because goods are being sent duty-free from its ports to land-locked Afghanistan, and then smuggled back across the border.

Afghan authorities say the hold-up has caused millions of dollars in losses to its traders.

 

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Afghan border trade resumes after Pakistan suspends new visa rule​

AFP
November 22, 2023

PESHAWAR: Cross-border trade between Pakistan and Afghanistan was back to normal on Wednesday, officials in both countries said, after Islamabad suspended a new visa rule.

Commercial traffic ground to a halt Tuesday when Pakistan began requiring the crew of commercial vehicles to have passports and visas to enter, and Afghanistan responded by refusing to allow any trucks to pass.

“Yesterday, when Pakistan enforced its new rules, the Afghan side responded by suspending trade in protest,” a Pakistan customs official told AFP Wednesday.

“Last night, officials from the Ministry of Commerce held a meeting with Afghan officials, reaching an agreement to grant another two-week extension for Afghan drivers.”

The official said Pakistan had already twice deferred implementing the new rule.

The media office of the governor of Nangarhar province in Afghanistan confirmed that cross-border trade had resumed.

“Afghan and Pakistani officials held talks… and it was assured that this problem will be solved permanently,” it said in a post on X.

Long-fraught relations between Kabul and Islamabad have worsened since October, when Pakistan announced plans to deport hundreds of thousands of Afghan migrants it said were in the country illegally.

 

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National Logistics Cell (NLC) is playing a crucial role in boosting Pakistan’s agricultural exports through regional cooperation.

With NLC’s support, Pakistan has established trade routes with Central Asia, China, and Russia.

As of a recent report, Pakistan has completed 300 successful trade operations with seven countries in the Shanghai region.

In March 2023, NLC, in collaboration with NDMA, swiftly delivered aid to Türkiye following the earthquake.

Pakistan continues to enhance bilateral relations with neighboring countries like Afghanistan, Iran, and Turkmenistan, using them as transit states to export goods, including meat, fruits, and vegetables, to China, Russia, and Central Asia. These exports have significantly contributed to foreign exchange earnings and strengthened regional cooperation.