Karachi, October 4, 2023 – The Pakistan Customs authorities have announced the commencement of physical inspections of Afghan transit goods as they pass through the country’s major trade routes.
This new initiative reflects Pakistan’s commitment to enhancing the integrity of the Afghan transit trade and curbing illicit activities.
In this regard, Federal Board of Revenue (FBR) issued SRO 1395(I)/2023 to implement the new action.
The physical examination of Afghan transit goods is set to be a game-changer for the region’s trade dynamics. It aims to address several key concerns, including the smuggling of contraband items, under-invoicing, and the diversion of goods intended for Afghanistan’s market to the domestic Pakistani market.
Under the Afghan-Pakistan Transit Trade Agreement (APTTA), which facilitates the movement of goods between Afghanistan and Pakistan, transit trade is a vital component of economic cooperation between the two neighboring countries. However, recent years have seen increased concerns regarding the misuse of this agreement for illicit activities.
Customs authorities in Pakistan are taking proactive measures to ensure the efficient and secure transit of goods. A physical examination process will include thorough inspections of cargo containers, documentation checks, and verification of the contents against declared information. This process is designed to prevent the misuse of the transit trade route and ensure that only legitimate goods destined for Afghanistan are allowed passage.
This move aligns with international best practices for trade facilitation and is expected to strengthen Pakistan’s reputation as a responsible trading partner in the region. It will also contribute to maintaining the security of the transit route and fostering economic stability in Afghanistan.
This development has been met with cautious optimism by stakeholders in the region, including business communities, customs officials, and trade experts. While the move is a positive step towards addressing trade-related challenges, its success will depend on the effective implementation of physical examinations and ongoing cooperation between Pakistan and Afghanistan.
