THE Afghanistan-Pakistan Transit Trade Agreement (APTTA) was signed in 2010 to facilitate trade between the two countries, and to help Afghanistan, which is a landlocked country, in having access to seaports in Pakistan.
However, there have been concerns that the APTTA has been misused by some Afghan traders who tend to import goods into Afghanistan only to smuggle them back into Pakistan, and sell the stuff in the local market.
This has had a negative impact on Pakistani industries which have to compete with these smuggled duty-free goods. Many of our local industries have suffered and there has been a justified outcry on the issue.
The government should take steps to address the problem. One option is to impose the same taxes and duties on goods imported under the APTTA as on goods imported by Pakistani businesses. This would help to level the playing field, and protect Pakistani industries.
Another option is to require Afghan importers to arrange their own foreign exchange for imports under the APTTA. This would reduce the pressure on Pakistan’s foreign exchange reserves.
It is important to note that any changes to the APTTA would need to be negotiated with Afghanistan. However, the Pakistani government should make it clear that it is serious about addressing the issue of smuggling and protecting Pakistani industries.
The proposed steps will enhance revenue, save foreign exchange, and protect local industries so that they may provide more jobs in Pakistan, which is what happens to be the need of the hour.
S.M. Arif
Karachi
Published in Dawn, October 24th, 2023
