Smuggling of Kenyan tea to Pakistan under ATT jumps by 159pc in FY2022-23

Country’s tea import through legal means declined by 9.13 percent during same time

ISLAMABAD  -  The smuggling of Kenyan black tea to Pakistan through Afghan Transit Trade (ATT) jumped by 159 percent during fiscal year 2022-23, while the country’s tea import through legal means declined by 9.13 percent during the same time.

The import of Kenyan black tea through Afghan Transit Trade has surprised the exporters and they have contacted Afghan authorities, official source told The Nation. Out of the total import of $75.63 million by Afghanistan from Kenyan through ATT, in FY 2022- 23, the value of the imported black tea was $75.20 million, while the remaining imports comprised of fruits and vegetables, paper/paperboard, medical or surgical instruments and electricity equipments. In the FY2021-22, the total import from Kenya under ATT was $29.30 million, which included $29.06 million worth black tea and the remaining was fruits and vegetables. The import of black tea by Afghanistan had recorded a hike of 159 percent in 2022-23, reached $75.20 million from $29.06 million in FY2021-22, said the source.

 Interestingly, the tea imports into the country during financial year 2022-23 reduced by 9.13 percent as compared to imports of the FY 2021-22. According to the data of Pakistan Bureau of Statistics, during the period from July-June of FY2022-23, about 231,449 metric tons of tea costing $556.043 million was imported as against the imports of 253,748 metric tons valuing $626.195 million of same period last year. The Kenyan authorities have complained to the Afghan authorities regarding the abnormal hike in the black tea import under Afghan Transit Trade. For the astonishment they were told by the Afghan authorities that use of black tea in Afghanistan is negligible, and it is imported under the grab of ATT and is being smuggled back to Pakistan illegally.

“They have told the Kenya that in Afghanistan no one uses black tea and the jump in year shows its smuggled back to Pakistan,” the source said. 

The Afghan authorities have also expressed shock over 159 percent increase in the import of the black tea, the source said. Neither the population of Afghanistan had increased so faster during the year, nor the Afghanis have started using black tea, the source said while quoting Afghan officials. The source said that to evade duties, the importers in Pakistan preferred the import of black tea from Kenya through Afghan Transit Trade, instead of legal route. The duty free black tea was then smuggled back to Pakistan which had caused loss to national exchequer, the source argued.

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