KARACHI: The State Bank of Pakistan (SBP) has made imports from Afghanistan easier by reducing the involvement of banks and making the procedure simple.
All imports into Pakistan must be made compulsorily through the electronic import form (EIF), a statement by the SBP said on Monday. The EIF was implemented with a view to curb illegal and duplicate payments of imports from Pakistan by unscrupulous elements.
Due to the peculiar nature of trade with Afghanistan through land routes, especially via Torkham and Chaman borders, Pakistani importers were facing difficulties to carry out import transactions through the EIF.
After recent terror attacks, the two routes have been closed down with the cross-border movement of goods coming to a halt. Afghanistan is a landlocked country and depends on Pakistan for its overseas imports. Pakistan allows Afghan transit trade, but the facility is grossly misused as tax-free goods are smuggled back into Pakistan.
“In order to address the difficulties and to facilitate traders of the above region, the procedure for the registration of contracts and payments there against has been simplified,” said the SBP.
Now the requirement for the routing of shipping documents against registered contracts through banks will not be mandatory for imports from Afghanistan through land routes.
Pakistani importers may now directly receive shipping documents from Afghan exporters and get the goods cleared after the attachment of goods declarations with the EIF. “Once the importer gets the contract registered and the EIF approved with the bank for multiple shipments, importers will not be required to approach the bank again and again for the approval of the EIF,” said the SBP.
The relaxation is expected to provide manifold benefits to the importers of the region by reducing their cost of doing business and efficient processing of goods clearance at customs stations bordering Afghanistan, said the SBP.
Afghanistan is the only country in the region with which Pakistan maintains a favourable trade balance.
In 2015-16, imports from Afghanistan were $40.6 million. In the first seven months of the current fiscal year, they remained $35.3m against $21.7m a year ago.
Exports to Afghanistan were $1,230m in 2015-16 while those in the first seven months of the current fiscal year remained $630m against $735m recorded in the same period a year ago.
The SBP said the contract may be registered for a single shipment or any number of multiple shipments as per the contract while the maximum tenure of the contract will be one year.
Published in Dawn, February 28th, 2017
