Pak-Afghan trade

The outcome of the meeting between Prime Minister Gilani and President Karzai in Kabul has raised hopes about economic and security ties between the two countries. The joint communiqu issued at the end of the talks also contains the commitment that the menace of terrorism would be tackled with mutual cooperation to further the Afghan peace process. It is welcome news, given the trust deficit that has marred relations between the two countries. A most important feature of the joint statement is the objective to expand the quantum of bilateral trade to $5 billion by the year 2015, from the present $2 billion, through proper implementation of the Afghan Transit Trade Agreement. All this hope about enhancing economic cooperation, echoing throughout Mr Gilanis statements in Kabul would have little chance of materialising unless the loopholes in the ATTA are plugged. A way forward would be to strengthen the customs department and ensure that under no circumstances the products imported under the agreement bound for Afghanistan are offloaded at transit centres, Landi Kotal or Chaman, and sold across Bara markets in Pakistan. This has been the usual practice for decades. Goods such as air-conditioners, spare parts of certain vehicles and a range of electronic products have very little market in Afghanistan, and are regularly dump in Pakistan. Therefore, preventing Afghan traders from importing these products would pay the expected dividend. The smuggling mafia, which consists of unscrupulous elements in the transport industry, corrupt customs officials, etc, is a force to reckon with and breaking the hold of this network over Pak-Afghan trade is therefore essential to begin with. A crucial factor that can seriously discourage smuggling is the collection of duty on imported products right at Karachi port. It is no wonder that the ruthlessness with which the Afghan transit trade has been exploited has denied Afghanistan and Pakistan a golden opportunity of economic progress. Fears about smuggling are intensified in the wake of inclusion of India in the ATTA at the US behest. Of course, the possibility of India misusing this trade conduit to harm us economically and even our security cannot be ruled out. The target of $5 billion can be achieved. Even more is possible provided the ATTA is strictly implemented, and weak spots manipulated by the smuggling mafia are taken care of. But at the end of the day, it all comes down to how seriously the government is ready to defeat the scourge of corruption.

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