Amid lack of business-friendly policies, Pak-Afghan trade volume shrinks to USD 1 billion

Amid lack of business-friendly policies and absence of barter trade, the Pakistan-Afghanistan trade volume had shrunk to USD 1 billion.

A report of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) released on Saturday said that the business has decreased from USD 2.5 billion to USD 1 billion, reported The Express Tribune.

"Lack of business-friendly policies, absence of proper barter trade mechanisms, 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 submitted to a committee on Afghanistan, headed by National Assembly Speaker Asad Qaiser.

It stated that in the absence of an operational banking structure in Afghanistan, banks refused to process third-party payments which hindered international transactions, reported The Express Tribune.

In addition, imposition of duties, fiscal reforms, double taxation, and unilateral imposition of duties and taxes by either government also affected the trade.

"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."

Speaking to The Express Tribune, PAJCCI Chairman Zubair Motiwala said that the government has not yet facilitated trade in rupees with Afghanistan whereas barter trade is also not allowed.

( With inputs from ANI )