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Trade Chamber welcomes preferential pact with Kabul but flags persistent barriers

The chamber also criticized delays in visa issuance for Afghan businessmen, calling for a streamlined process to facilitate greater economic engagement.

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The Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) has welcomed the signing of a preferential trade agreement (PTA) between Islamabad and Kabul but expressed concern over ongoing obstacles hampering bilateral and transit trade.

The agreement, formalized earlier this week by Pakistan’s Commerce Secretary Jawad Paul and Afghanistan’s Deputy Minister of Industry and Commerce Mullah Ahmadullah Zahid, reduces tariffs on key agricultural exports.

Under the new terms, duties on Afghan grapes, pomegranates, apples, and tomatoes — as well as Pakistani mangoes, oranges, bananas, and potatoes — have been slashed from over 60% to 27%, with a further reduced 22% rate for tomatoes and potatoes.

“This progress builds on discussions held during the Special Investment Facilitation Council (SIFC) meeting on December 17, 2024,” PAJCCI Chairman Muhammad Zubair Motiwala said in a statement Saturday.

“This milestone reflects our longstanding demands, pursued through consistent efforts and reinforced during the SIFC meeting, marking a significant step towards enhancing trade,” he said.

However, despite the agreement, PAJCCI President Junaid Makda warned that structural and regulatory hurdles continue to undermine trade potential. He noted that bilateral and transit trade volumes have plummeted from a peak of $2.5 billion to just $1.2 billion in 2024, The Express Tribune reported.

“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,” Makda said.

He added that payment disputes — fueled by banking limitations — have triggered unwarranted scrutiny by the Federal Investigation Agency (FIA), further eroding traders’ confidence. The temporary nature of Electronic Import Form (EIF) waivers also complicates planning and logistics for businesses engaged in cross-border commerce.

The chamber also criticized delays in visa issuance for Afghan businessmen, calling for a streamlined process to facilitate greater economic engagement.

In addition, the chamber raised concerns over the 1% infrastructure development levy imposed by the Khyber Pakhtunkhwa government. While the rate has been reduced, PAJCCI argues it still burdens transit trade and contravenes Pakistan’s international trade commitments.

The chamber warned that such fees are driving some trade to alternative routes such as Iran’s Chahbahar port, undermining Pakistan’s regional competitiveness, Dawn News reported.

PAJCCI urged the federal government to implement systemic reforms to eliminate policy inconsistencies and operational inefficiencies that continue to stifle trade growth between the two neighboring countries.

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Uzbekistan reports strong surge in trade with global partners led by China

China accounts for 23.6% of total foreign trade turnover, followed by Russia with 17.2%, Kazakhstan with 6.9%, Turkey with 3.5%, and Afghanistan with 2.8%.

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Uzbekistan has recorded a significant increase in foreign trade during January–April 2026, driven by expanding economic ties with China and steady growth across Central Asia, the Middle East, and Europe, according to official statistics.

Data from the National Statistics Committee show that China remained Uzbekistan’s largest trading partner, with bilateral trade reaching $6.23 billion, up sharply from $4.17 billion in the same period last year. Russia followed with $4.52 billion, while Kazakhstan ranked third at $1.81 billion.

Other key partners included Turkey, Afghanistan, South Korea, the United Arab Emirates, and France, with additional growth recorded in trade with Germany, India, Belarus, Kyrgyzstan, and several other countries.

The fastest-growing trade relationships were seen with the United Arab Emirates, Ireland, Afghanistan, and Vietnam, highlighting Uzbekistan’s continued efforts to diversify its external economic partnerships.

Overall, Uzbekistan now maintains trade relations with more than 175 countries. China accounts for 23.6% of total foreign trade turnover, followed by Russia with 17.2%, Kazakhstan with 6.9%, Turkey with 3.5%, and Afghanistan with 2.8%.

Exports remain largely dominated by goods, making up 65.3% of outbound trade, including industrial products, chemicals, manufactured goods, and food products, according to official data.

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Tashkent Deputy Governor set to visit Kabul with Uzbek trade delegation

The Deputy Governor accepted the invitation and said he plans to travel to Kabul in the coming months at the head of a trade delegation.

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Sayed Karim Hashemi, Director General of the Afghanistan Chamber of Commerce and Investment (ACCI), has met with the Deputy Governor of Tashkent to discuss expanding trade and economic cooperation between Afghanistan and Uzbekistan.

During the meeting, Hashemi highlighted the growing economic ties between Kabul and Tashkent, noting that the ACCI has hosted several Uzbek governors and trade delegations in recent years. He also expressed satisfaction with the increase in bilateral trade between the two countries and invited the Tashkent Deputy Governor to visit Kabul.

The Deputy Governor accepted the invitation and said he plans to travel to Kabul in the coming months at the head of a trade delegation.

He welcomed the expansion of cooperation between the chambers of commerce of Afghanistan and Uzbekistan and described the establishment of Uzbek trade houses in Kabul, Balkh, Herat, and Nangarhar provinces as a significant step toward strengthening trade relations.

The Tashkent official also emphasized the importance of sustaining economic and commercial cooperation and pledged continued support for Afghanistan’s private sector through all available means.

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Afghanistan highlights strategic connectivity role at Termez Dialogue

Azizi stressed that shared economic interests can play a crucial role in fostering lasting peace, mutual trust, and regional stability.

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Afghanistan has reaffirmed its commitment to regional economic integration, highlighting its strategic position as a vital link between Central and South Asia during the second Termez Dialogue on Connectivity.

Afghanistan’s Minister of Industry and Commerce, Nooruddin Azizi, participated in the forum, which brought together senior government officials, representatives of the United Nations, the European Union, and regional organizations under the theme, “Peace, Connectivity and Prosperity: Building the Foundations of Shared Development.”

Addressing the high-level session virtually, Azizi emphasized Afghanistan’s vision of expanding regional trade, strengthening economic cooperation, and maximizing the country’s transit potential.

According to the Ministry of Industry and Commerce, Azizi noted that Afghanistan’s geographic location uniquely positions it to serve as a bridge between Central and South Asia, facilitating the movement of goods, investment, and people across the region.

He also highlighted the Trans-Afghan Railway Project as a key regional connectivity initiative, saying it would help link rail networks, boost trade and transit, and deepen economic cooperation among participating countries.

Azizi stressed that shared economic interests can play a crucial role in fostering lasting peace, mutual trust, and regional stability.

Representatives from Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Azerbaijan, India, and Bangladesh also attended the dialogue, underscoring the importance of expanding economic partnerships and developing new trade corridors.

Afghanistan’s participation reflects its growing role in regional transit and infrastructure initiatives aimed at strengthening connectivity and economic growth across Central and South Asia.

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