Business Leaders Prefer Anti-Smuggling to Trade Restrictions

Business Leaders Prefer Anti-Smuggling to Trade Restrictions

Peshawar, January 27, 2024 – In a meeting held at Custom House Peshawar, a delegation of business leaders has urged the Federal Board of Revenue (FBR) to focus on curbing smuggling rather than imposing restrictions on Pak-Afghan trade.

The delegation, jointly led by Zia-ul-Haq Sarhadi, Coordinator of Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), and Syed Jawad Hussain Kazmi, President of Khyber Chamber of Commerce and Industry, conveyed their concerns during a consultation with FBR Chairman Malik Amjad Zubair Tawana.

According to a press statement issued on Saturday, the delegation included prominent figures such as Chief Collector Customs KP, Saeed Akram, Chief Commissioner Inland Revenue Peshawar, Zafar Iqbal Khan, and various other key stakeholders in trade and commerce. They emphasized the need for effective measures to combat smuggling while highlighting the potential negative impact of imposing restrictions on the Pak-Afghan trade route.

Zia-ul-Haq Sarhadi, President of PAJCCI and also the President of Frontier Custom Clearing Agents Association, argued that smuggling is the primary issue affecting Pak-Afghan trade and suggested that increased monitoring and vigilance at border points would be more effective in curbing this problem. Sarhadi cautioned against using trade restrictions as a means to address smuggling, stating that such an approach could prove detrimental to the expansion of commerce and trade, especially with Central Asian Republics (CARs).

Sarhadi drew attention to historical decisions, citing a ban on 17 items for trade with Afghanistan around 18 years ago. He claimed that the ban led to significant financial losses for Pakistan Railways and resulted in banned items finding their way into Afghanistan through flights from UAE and then entering Pakistani markets through smuggling.

The delegation also expressed concerns about recent decisions, such as the ban on 14 items through SRO 1380 and the imposition of a 10 percent processing fee on transit cargo via SRO 1387. Sarhadi highlighted that these measures were affecting the smooth transit of cargo and urged for a more comprehensive strategy to address smuggling.

Furthermore, the businessmen stressed the negative impact of frequent closures of the Pak-Afghan trade route on the business community, exporters, importers, and transporters. They cited routine delays in the clearance of goods-laden trucks, resulting in additional demurrage and detention charges.

Zia-ul-Haq Sarhadi also called for the timely completion of the Border Terminal by the National Logistics Cell (NLC) and emphasized that local people in the area should be given priority in job opportunities, as promised. FBR Chairman Malik Amjad Zubair Tawana reassured the businessmen about the government’s commitment to stabilizing the economy and promoting commerce and trade, pledging to take all necessary measures for the betterment of the country’s economic landscape.