Afghan Transit Trade key reason of black economy in Pakistan: report
- By Web Desk -
- Sep 13, 2023
KARACHI: The Afghan Transit Trade leaves negative impact over the national economy and has been one of the basic reasons of the black economy prevailing in Pakistan.
According to a report Afghan authorities misstate about prices of the Aghan Transit Trade items, which results in an obvious difference between the reported and real values of an item.
“These items brought back to Pakistan illegally for sale,” according to the report.
According to the Bureau of Statistics Afghan traders save three quarters of their trade items from customs duty by smuggling. “Thus, Pakistan sustain annual losses to the tune of around three billion dollars”.
“These traders tamper the tracking system installed on container trucks, which affect the tracking mechanism”.
These trucks used to sell the Afghan trade items on cheaper rates in black market in country, posing a threat to local industry.
Narcotics and other contraband items also used to smuggle with the transit trade. Fake bills of lading also causing complications in keeping the tracking record, sources said.
Afghan imports under the transit trade have increased by 67% and soared to 6.71 billion US dollars value in February 2022-23, while the imports were four billion USD in previous year.
The import items under the ATT included artificial fibre, electricity items, electronics equipment, tyre tubes and tea etc.
This increase in imports has decreased the country’s actual imports considerably. Manufacturing of products of the cloth made with artificial filament, has decreased by 48 percent, electronic equipment and tyre and rubber imports have dropped by 62 and 42 pct respectively.
“The import of tea reduced by 51%, machinery 34 pct, vegetables and fruits 46 pct,” according to the report.
Afghan Transit Trade has badly affected Pakistan’s small and medium scale industries and the economy, as per the report.
It has stressed the need of regulating the Afghan trade as per the standard international laws in the world for economic revival of Pakistan.