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Business Recorder
7 days ago
- Business
- Business Recorder
Businessmen voice concerns over trade challenges at Iran, Afghanistan borders
ISLAMABAD: The representatives of Quetta Chamber of Commerce informed the Senate Standing Committee on Finance at length about the major challenges being faced by local businessmen in carrying out trade activities through the Pakistan-Iran and the Pakistan-Afghanistan border areas, a statement said. The businessmen also highlighted that despite importing hundreds of items from Iran, Pakistan exports only 10 items to the neighbouring country, exposing a stark imbalance in bilateral trade, the statement added. As per the details, Quetta chamber president Muhammad Ayub Mariani, senior vice president Haji Akhtar Kakar, vice president engineer Mir Wais Khan, and others stated that not only had they conveyed the obstacles in bilateral trade with Iran and Afghanistan to the higher authorities, but also held dialogues with Afghan and Iranian officials in that regard. Govt bars pilgrims from traveling to Iran, Iraq by road this Arbaeen The participants were informed that due to the requirement of the Electronic Import Form (EIF) form, bilateral trade had come to a halt, and Pakistani cargo trucks were being held in Iran unnecessarily for 15 to 20 days. Complaints were also made about the increase in attestation and visa fees. They also discussed the Joint Economic Forum and Joint Border Trade Committee with Iran, lamenting that the recommendations of the Economic Forum and Joint Border Committee had not been implemented by either country. The businessmen demanded the inclusion of officials from the federal ministries of Commerce and Finance, as well as the prime minister's representatives, in the merging of the Economic Forum and Joint Border Trade Committee, so that matters could reach a logical conclusion. They expressed reservations about the reopening and then closure of the Badini border, the reopening of Qamaruddin Karez border, inactivity of border markets, and other issues, and presented suggestions. The businessmen stated that if cold storage and LPG terminals and other issues at Chaman and Taftan borders were resolved, trade volume with neighboring countries could be significantly increased. On the occasion, committee chairman Saleem Mandviwalla said for the past six months, they had been receiving complaints in Islamabad regarding Pakistan-Iran and Pakistan-Afghanistan bilateral trade issues. Cross-border trade: FBR issues PSW (Evidence of Identity) Regulations Some issues would be resolved on the spot, while others would be conveyed to higher authorities, he added. Mandviwalla said mentioned that the Iranian Consul General had given them a list of issues, and Balochistan's business community also shared their problems. They would be presented to the Iranian president and the high-level delegation accompanying him, he added. Iran President Dr Masoud Pezeshkian is due to visit Pakistan on August 2 (Saturday) for a two-day trip.
Express Tribune
27-07-2025
- Business
- Express Tribune
Chamber decries hurdles to trade with Kabul
Trucks loaded with supplies wait to cross into Afghanistan at the Friendship Gate crossing point, in the Pakistan-Afghanistan border town of Chaman. PHOTO: REUTERS/FILE Listen to article The Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), led by Chairman Muhammad Zubair Motiwala, has welcomed the signing of a preferential trade agreement (PTA) between the two countries earlier this week. Formalised by Pakistan's Commerce Secretary Jawad Paul and Afghanistan's Deputy Minister of Industry and Commerce Mullah Ahmadullah Zahid, this agreement reduces tariffs on key agricultural commodities such as Afghanistan's grapes, pomegranates, apples and tomatoes and Pakistani mangoes, oranges, bananas and potatoes from over 60% to 27%, with a special 22% rate for tomatoes and potatoes. "PAJCCI acknowledges this progress, which builds on discussions held in a meeting of the Special Investment Facilitation Council (SIFC) on December 17, 2024. This milestone reflects our longstanding demands, pursued through consistent efforts and reinforced during the SIFC meeting, marking a significant step towards enhancing trade," the chamber said in a statement on Saturday. Despite the encouraging step, PAJCCI President Junaid Makda remained concerned about persistent challenges hindering bilateral and transit trade, which declined from $2.5 billion at its peak to $1.2 billion in 2024. "As outlined in our recent letter to Interior Minister Mohsin Naqvi, these issues include the lack of a consistent, long-term trade policy from the Ministry of Commerce and the State Bank of Pakistan, creating uncertainty among traders and discouraging investment," he said. Payment disputes, driven by banking inefficiencies, have led to undue pressure from the Federal Investigation Agency (FIA) on legitimate businesses, which impacted traders' confidence. Temporary Electronic Import Form waivers, without a permanent system, complicate trade planning while delays in visa issuance for Afghan businessmen are highly discouraging, and streamlining the process could foster greater economic collaboration, the chamber said. The Khyber-Pakhtunkhwa government's infrastructure development cess, though reduced to 1%, continues to burden transit trade, which is contrary to international commitments and diverts some trade to routes like Chahbahar, Iran.
Business Recorder
26-07-2025
- Business
- Business Recorder
PAJCCI welcomes Pak-Afghan PTA
KARACHI: The Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), under the leadership of Chairman Muhammad Zubair Motiwala, warmly welcomed the signing of the Preferential Trade Agreement (PTA) between Pakistan and Afghanistan on July 23, 2025. Formalized by Pakistan's Commerce Secretary Jawad Paul and Afghanistan's Deputy Minister of Industry and Commerce Mullah Ahmadullah Zahid, this agreement reduces tariffs on key agricultural goods such as Afghan grapes, pomegranates, apples, and tomatoes, and Pakistani mangoes, oranges, bananas, and potatoes from over 60% to 27%, with a special 22% rate for tomatoes and potatoes. PAJCCI acknowledges this progress, which builds on discussions from the Special Investment Facilitation Council (SIFC) meeting on December 17, 2024. This milestone reflects PAJCCI's long-standing demands, pursued through persistent efforts and reinforced during the SIFC meeting, marking a significant step toward enhanced bilateral trade. Despite this encouraging step, PAJCCI President Juanid Makda remains concerned about persistent challenges hindering bilateral and transit trade, which has declined from $2.5 billion at its peak to $1.2 billion in 2024. As outlined in our recent letter to the Minister of Interior, Mohsin Naqvi, these issues include the lack of a consistent, long-term trade policy from the Ministry of Commerce (MoC) and State Bank of Pakistan (SBP), creating uncertainty for traders and discouraging investment. Payment disputes, driven by banking inefficiencies, have led to undue pressure from the Federal Investigation Agency (FIA) on legitimate businesses, affecting trader confidence. Temporary Electronic Import Form (EIF) waivers, without a permanent system, complicate trade planning, while delays in visa issuance for Afghan businessmen are highly discouraging, streamlining the process could foster greater economic collaboration. The Khyber Pakhtunkhwa government's Infrastructure Development Cess (IDC), though reduced to 1%, and continues to burden transit trade, contrary to international commitments, diverting some trade to routes like Chabahar, Iran. Statutory Regulatory Orders (SROs) from October 2023, including a 10% processing fee on Afghan goods, have significantly reduced trade volumes, despite recent relaxations. Frequent Torkham border closures due to security and administrative issues further challenge cross-border commerce. Makda emphasizes the need for private-sector representation from both chapters (Pakistan & Afghanistan) in the newly formed PTA Implementation Committee, led by MoIC (Afghanistan) and MoC (Pakistan). This committee, with representatives from Customs and Agriculture Ministries meeting monthly, would benefit greatly from PAJCCI's insights as a voice for businesses facing these challenges, ensuring practical and effective solutions. To unlock the $7 billion trade potential, PAJCCI encourages collaborative efforts to develop a long-term trade policy with MoC and SBP, streamline payment processes to resolve FIA concerns, establish a permanent EIF waiver system, simplify visa processes for Afghan Businessman, exempt transit trade from IDC, digitize trade processes through SBP and Pakistan Single Window (PSW), and review restrictive SROs. Under the leadership of Chairman Muhammad Zubair Motiwala and Co-Chairman Khan Jan Alokozai PAJCCI remains committed to working with the SIFC, MoC, Ministry of Interior, and SBP, and to address these challenges and strengthen Pakistan's role as a vital trade hub for Afghanistan and Central Asian Republics. Copyright Business Recorder, 2025
Business Recorder
05-06-2025
- Business
- Business Recorder
Trade with Iran, Afghanistan without EIF, FI waivers will remain difficult: SBP
ISLAMABAD: The State Bank of Pakistan (SBP) has stated that establishing formal banking relationships with Iran and Afghanistan and facilitating trade with these countries will remain difficult without waivers for the Electronic Import Form (EIF) and Financial Instruments (FI), sources in the Ministry of Commerce told Business Recorder. According to sources, due to the absence of active banking ties (correspondent import arrangements) with Afghanistan and Iran, and given the unique nature of trade with these neighbouring countries, the Ministry of Commerce (MoC), in consultation with relevant stakeholders, had earlier decided to waive the EIF and FI requirements to facilitate trade. However, SBP previously raised concerns over potential misuse of this facility, as these transactions are settled outside the formal banking system. To mitigate these risks, the SBP emphasized the need for additional controls within the WEBOC and Pakistan Single Window (PSW) systems. These controls would help ensure that only genuine importers, exporters, and traders benefit from the facilitation. The SBP further maintained that such waivers or exemptions should be limited strictly to non-sanctioned goods of Iranian and Afghan origin. Barter trade with Iran, Afghanistan: Senate panel assails MoC for proposing permanent EIF exemption The SBP reiterated that without the EIF/FI waivers, trade with Iran and Afghanistan would remain difficult unless formal banking channels are established. It recommended that a policy-level decision on this issue should be made by the federal government, specifically the Economic Coordination Committee (ECC) of the Cabinet. The SBP also suggested operationalizing barter trade arrangements with both countries as a more secure alternative to granting waivers, which could lead to misuse via informal financial channels. The import and export of goods to and from Pakistan are regulated by the Ministry of Commerce through the Import Policy Order (IPO) and Export Policy Order (EPO), respectively, under the Imports and Exports (Control) Act, 1950. As per sources, Para 3 of the IPO and EPO allows imports and exports through all modes of payment in line with foreign exchange regulations and procedures prescribed by the SBP. It also permits barter trade arrangements. Foreign exchange policy in Pakistan is governed by the Foreign Exchange Regulation Act, 1947. Under this Act, the SBP issues directions and instructions to banks regarding foreign exchange transactions. While Chapter 13 ('Imports') of the SBP's Foreign Exchange Manual outlines the regulations related to imports, it does not contain specific instructions for imports from Afghanistan and Iran. Chapter 12 ('Exports') of FEM contains instructions regarding exports from Pakistan. However, some specific instructions related to exports to Afghanistan are outlined which include: (i) instructions for exports to Afghanistan against settlement in PKR and in convertible currencies, which was implemented since EPO 2000, as per MoC SRO 137(1)/2002 of March 7, 2002 ; and (ii) in view of peculiar nature of trade with Afghanistan, the banks are allowed to accept cash convertible currencies brought over their counter by the exporters and convert the same at the prevailing exchange rate applicable for normal export proceeds for credit to the PKR account of the of the exporter. It has been proposed that the requirement for the issuance of certificate of origin should be mandatory for the goods coming from Iran and Afghanistan through land routes, as import from other countries can be settled through the normal banking channels. This requirement should apply to all goods imported from Iran & Afghanistan. There is no justification for goods of non-Iranian origin - such as those originating from China, Singapore, UAE, Hong Kong, Malaysia etc. to be imported/routed through these countries. There are no restrictions for importing the goods directly from the aforementioned countries and import from them can easily be made through normal banking channels directly. Routing all transactions through the normal banking channels from these countries will not only improve the visibility of trade transactions but will also discourage usage of informal channels for settlement. Earlier in 2023, FBR & MoC had issued four SROs aimed at regulating Afghan Transit Trade by imposing ban on certain items (which were smuggled back into Pakistan and had no demand in Afghanistan) as well as imposing 10% processing fee etc. 'It seems that some of these restricted items are being brought into Pakistan through Iran, to avoid / circumvent MoC's restrictions,' the sources concluded. Copyright Business Recorder, 2025
Business Recorder
07-05-2025
- Business
- Business Recorder
Barter trade with Iran, Afghanistan: Senate panel assails MoC for proposing permanent EIF exemption
ISLAMABAD: The Senate Standing Committee on Commerce on Tuesday strongly criticised senior officials from the Ministry of Commerce for proposing a permanent exemption from the Electronic Import Form (EIF) for barter trade with Iran and Afghanistan— an act that may breach US sanctions. Neither Commerce Minister Jam Kamal nor Secretary Commerce Jawad Paul attended the meeting, citing other pressing engagements. Their absence drew further ire from the Committee, which was chaired by Senator Anusha Rahman Ahmad Khan. The Commerce Ministry's team, led by Additional Secretary Nasir Hamid, declined to share the draft summary intended for the Economic Coordination Committee (ECC) of the Cabinet. Hamid cited procedural rules that prohibit the sharing of such documents at any forum prior to ECC approval. Pakistan, Iran vow to meet potential $10bn trade target in coming years However, the Ministry informed the Committee that two separate summaries had been circulated to the Ministry of Finance, Federal Board of Revenue (FBR), and the State Bank of Pakistan (SBP) for feedback. Officials clarified that no EIF exemption had been proposed for non-Iranian origin goods, as regular banking channels are available with those countries, in line with the SBP's letter dated April 9, 2025. Currently, imports of Iranian-origin goods are exempt from the EIF requirement until May 15, 2025. This exemption— limited to specific commodities— is being extended for 45 days at a time under High Court directives. 'We need a permanent solution to the EIF issue,' said Additional Secretary Hamid. 'The FIA is pursuing Commerce Ministry officials over alleged complicity in smuggling from Iran and Afghanistan. Pakistani banks are reluctant to process such trade for fear of penalties.' The Committee expressed strong reservations about the Ministry's request to exempt certain barter transactions from the Import Policy Order (IPO) 2022, the EIF, and financial instruments required under SBP regulations— including Chapter 13 of the Foreign Exchange Manual and Circular No. 5/2-16 dated August 9, 2016. These provisions currently apply to imports of Iranian goods via land routes until formal banking channels are established. 'I don't think the ECC or SBP will approve an EIF exemption due to the sanctions,' said Chairperson Senator Anusha Rahman. 'This request is unjustified. You're asking ECC to do something that falls afoul of US sanctions. If it were legally feasible, we wouldn't have needed the EIF two years ago. You are knowingly proposing a measure the SBP cannot support. Don't embarrass the government by pushing for what cannot be done.' She urged the Ministry to identify and address the obstacles facing traders and noted that there must either be a clearly defined barter trade policy or compliance with the existing Import Policy Order. 'We formed a sub-committee to explore ways to facilitate barter trade, but its report has yet to be submitted,' she added, demanding a timeline for its completion. Joint Secretary Waqas Azeem informed the Committee that three meetings had been held and final recommendations would be submitted by next Tuesday. Additional Secretary Hamid reiterated the Ministry's intent to find a lasting resolution for trade with Iran. The Committee also discussed the matter of approximately 1,200 trucks stranded in Balochistan, reportedly carrying goods not permitted under the current barter trade policy. Haji Fojan Barech, Chairman of the Dry Fruits Importers Association, claimed the trucks held dry fruits worth millions of dollars. However, the Ministry questioned the authenticity of his claims regarding both the contents and the number of vehicles. In a sarcastic remark, Senator Saleem Mandviwala suggested writing to the High Court for a 'lifetime exemption' from the EIF if the Ministry fails to find a workable solution. 'Currently, no formal mechanism exists for trade with Iran,' he added. 'There's more smuggling than legitimate trade because of our flawed policies.' Senator Hamid Ali Khan emphasised the need for formalised trade with Iran and Afghanistan, stressing that smuggling— especially in Balochistan— must be curbed. The Ministry of Commerce is currently reviewing the existing barter trade SRO in consultation with stakeholders. Three meetings have already been held by the committee established to identify gaps in SRO 642(1)/2023, which governs the B2B barter trade mechanism. Key decisions from the last meeting held on April 7, 2025, include: (i) elimination of the current list of importable/ exportable items in SRO 642(1)/ 2023 and alignment with the IPO/ EPO 2022 and prescribed conditions; (ii) the Ministry of Foreign Affairs will provide a list of items/ entities sanctioned by the US, UN, and other organisation; and (iii) FBR will propose amendments to enable transfer of credit between contracting parties for netting off goods' value. Chairperson Rahman remained unconvinced by the Ministry's presentation. 'This issue needs to be addressed at a higher level— beyond the comprehension of those in this meeting,' she said. After over an hour of discussion, the Committee agreed to hold a joint meeting with the Finance Minister, Commerce Minister, and Governor SBP to resolve the EIF exemption and barter trade mechanism. A representative from the Policy Research Institute of Market Economy (PRIME) presented data estimating the financial impact of smuggling and the informal economy at Rs 751 billion. However, the figures related to tobacco and pharmaceuticals were contested by Senator Faisal Rehman and representatives from the Pharma Association. According to a press release, the committee directed the Ministry of Commerce to fast track summaries initiated for barter trade and for the import policy order. The Committee members directed the ministry to resolve the confusion on trade with Iran, Russia and Afghanistan through a barter system, vs the parallel trade ongoing under IPO. Senator Saleem Mandviwalla reiterated the strategic importance of barter trade in tackling cross-border smuggling, stating barter trade from Iran and Afghanistan will help prevent smuggling. Affected traders added that over 1,200 trucks have been stalled at the border, loaded under barter terms, with sesame and rice exported without involving dollar payments. The Committee also constituted a Sub-committee comprising of Senators Zeeshan Khanzada, Sarmad Ali and Faisal Rahman to provide recommendation on the tobacco sector. It was also agreed that the issue of counterfeit medicines will be reviewed by the Standing Committee on Health. Trade and Investment Officers (TIOs) posted abroad also briefed the committee on potential trade opportunities, marking a continued commitment to expanding Pakistan's global trade footprint. Present at the meeting were Senators Sarmad Ali, Faisal Saleem Rehman, Bilal Ahmed Khan, Hamid Khan, Amir Waliuddin Chishti, Saleem Mandviwalla, Zeeshan Khanzada, and Muhammad Tallal Badar, along with senior officials from the Ministry of Commerce representatives from the private sector, and trade officers posted abroad. Copyright Business Recorder, 2025
