Karachi, October 4, 2023 – Pakistan has expanded its negative list to prohibit certain goods imported by Afghanistan under transit arrangements, in a move aimed at curbing smuggling and preventing the misuse of transit facilities,
The decision comes as part of ongoing efforts by the Pakistani government to secure its borders and protect its economy from illicit trade activities.
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The Pakistani Ministry of Commerce issued Statutory Regulatory Order (SRO) 1397(I)/2023, outlining the measures to be taken concerning items prone to smuggling that are imported by Afghanistan in transit through Pakistan. These measures involve amendments to the existing notification, SRO 151(I)/2004, which dates back to March 10, 2004, governing Afghan transit trade.
The newly added items to the negative list include fabrics, tires, black tea, cosmetics and toiletries, nuts and fruits, vacuum flasks, home appliances completely built units (CBUs), among others.
The ministry specified that these new measures would be subject to certain conditions:
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(i) They shall not apply to transit cargo that has already arrived at Pakistani ports. Cargo at sea will have the option for re-export upon reaching Pakistani ports.
(ii) They shall not be applicable to transit cargo intended for foreign grant-in-aid to Afghanistan.
These measures are part of a series of actions taken by the Pakistani government to address the challenges of smuggling and the misuse of transit trade facilities granted to Afghanistan.
Pakistan has allowed its territory to be used for the transit of goods imported by Afghanistan, a landlocked country. Both governments have a treaty governing this transit facility. However, in recent years, concerns have grown about the impact of transit trade on Pakistan’s economy.
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In addition to expanding the negative list, Pakistan has implemented other measures to regulate transit trade, including the requirement of mandatory banking guarantees, physical examination of goods, and the introduction of processing fees for various goods imported under Afghan transit trade.
These actions demonstrate Pakistan’s commitment to ensuring the integrity of its transit trade arrangements with Afghanistan and safeguarding its economy against smuggling and misuse. The government aims to strike a balance between facilitating legitimate trade and preventing illegal activities in the region.
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The expansion of the negative list and other measures are expected to enhance the transparency and security of the Afghan transit trade route, benefitting both nations and fostering regional economic stability.
