Business
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.
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.
Business
Iraqi intelligence report alleges oil smuggling network supplying Afghanistan and Turkey through Iran
The report highlights broader challenges facing regional authorities in combating illicit oil trade and enforcing international sanctions.
An Iraqi intelligence report obtained by Sky News Arabia has revealed alleged large-scale crude oil smuggling operations from northern Iraq into Iran, where the oil is reportedly refined and later sold in regional markets, including Afghanistan and Turkey.
According to the report, shipments of crude oil are transported through land routes and unofficial trade channels into Iranian territory, where they undergo refining and processing before being re-exported to foreign markets.
The intelligence findings suggest that the alleged network is designed to bypass international sanctions and facilitate the movement of petroleum products outside official trade and financial monitoring systems.
The report further indicates that smuggling networks rely on informal transportation routes and cross-border commercial channels to maintain the collection, processing and distribution of oil products while avoiding regulatory oversight.
The revelations have raised concerns over cross-border smuggling, the loss of national resources and the potential impact of illicit oil trade on regional economies.
Security and political observers say the reported activities could put additional pressure on Iraqi authorities to strengthen border controls, monitor oil transportation routes and improve coordination with regional and international partners.
However, the allegations outlined in the intelligence report have not been independently verified, and further details about the networks involved, the quantities of oil transported and the scale of supplies reaching Afghanistan and Turkey remain unclear.
The report highlights broader challenges facing regional authorities in combating illicit oil trade and enforcing international sanctions.
Business
$30 million pharmaceutical investment launched in Herat as new production line opens
Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.
The foundation stone has been laid for three new pharmaceutical production blocks at Ovison Pharma in Herat, with an investment of $30 million, while the factory’s new serum and injectable production line has also been inaugurated.
The new production blocks will be constructed on a 3,000-square-metre site, with each facility planned to have five floors. Equipped with advanced machinery and designed to meet international standards, the expansion is expected to significantly increase the factory’s pharmaceutical production capacity.
Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.
The expansion marks a significant step toward strengthening Afghanistan’s pharmaceutical industry, increasing domestic production and reducing the country’s reliance on imported medicines.
The investment is also expected to support the development of local manufacturing capacity and improve access to domestically produced pharmaceutical products.
Business
Afghanistan approves new foreign investment policy in bid to attract international investors
The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.
Afghanistan’s Economic Commission has approved a new foreign investment policy aimed at attracting international investors, improving investment opportunities and supporting the country’s economic growth.
The decision was made during the commission’s regular meeting, chaired by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, at the Marble Palace on Monday.
According to the Deputy Prime Minister’s Office for Economic Affairs, the proposed policy was presented by a committee established under the leadership of the economic deputy office. Following a comprehensive review and consideration of the commission’s recommendations, the policy was approved.
The policy aims to regulate foreign investment activities, facilitate investment procedures, create a favourable environment for investors, ensure investment security and promote Afghanistan’s economic growth and development.
During the meeting, the commission also approved a proposal concerning the payment of fixed taxes by commercial import companies at the country’s customs offices.
Officials said implementing the proposal would create additional facilities and simplify procedures for importing businesses.
The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.
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