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
Afghanistan eyes direct Basmati rice imports from India amid tensions with Pakistan
Afghanistan is exploring direct imports of Basmati rice from India as it seeks to diversify its supply sources amid ongoing tensions with Pakistan, according to a report by The Hindu.
The report said Indian exporters and Afghan importers are expected to meet next month to discuss expanding direct trade in Basmati rice, following preliminary talks between officials from both countries held last week with the facilitation of the PHD Chamber of Commerce and Industry.
Afghanistan consumes nearly 500,000 tonnes of Basmati rice annually and has traditionally relied on imports from neighboring Pakistan. However, industry sources told The Hindu that recent strains in Afghanistan-Pakistan relations have encouraged Kabul to seek alternative suppliers, including India.
Representatives of Afghanistan’s diplomatic mission in New Delhi reportedly took part in the discussions and expressed interest in increasing purchases of Indian Basmati rice. At present, some Indian rice reaches Afghanistan indirectly through traders in Iran and Dubai, a route that adds to transportation and transaction costs.
One proposal under consideration is to transport rice through Iran’s Bandar Abbas Port, subject to agreements between the two governments. The discussions are also expected to cover logistics, payment mechanisms, and the possibility of barter trade, with Afghanistan’s dried fruit exports to India seen as a potential component of future trade arrangements.
According to The Hindu, a direct trade arrangement could help India expand its share of Afghanistan’s Basmati market, which has historically been dominated by Pakistani suppliers.
Business
Afghanistan, Kyrgyzstan establish trade council to boost economic cooperation
The two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council.
The Embassy of the Islamic Emirate of Afghanistan in Kyrgyzstan says the Afghanistan-Kyrgyzstan Business Forum has been held with the participation of officials from both countries.
According to a statement issued by the embassy, Acting Ambassador Abdul Shakoor Haqqani said Afghanistan supports strengthening bilateral trade relations and promoting joint economic initiatives between the two countries.
The statement added that the two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council. The council aims to strengthen ties between business communities, coordinate joint initiatives, and expand and support economic projects.
Meanwhile, Sayed Karim Hashemi, Chairman of the Afghanistan Chamber of Commerce and Investment, arrived in Kyrgyzstan on Saturday at the head of a trade delegation to participate in the forum.
Business
Afghanistan invites Turkish investors to expand joint investments
Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.
A high-level Afghan business delegation, led by the Chairman of the Balkh Chamber of Commerce and Investment, Mohammad Ibrahim Ghazanfar, participated in the Afghanistan–Türkiye Joint Business Council meeting in Istanbul, calling for expanded joint investment and stronger economic cooperation between the two countries.
According to a statement from the Balkh Chamber of Commerce and Investment, Ghazanfar invited Turkish investors and industrialists to explore investment opportunities across various sectors in Afghanistan, emphasizing the country’s potential for mutually beneficial partnerships.
The meeting brought together business leaders, investors, and private sector representatives from both Afghanistan and Türkiye to discuss ways to strengthen bilateral trade and economic ties.
During the event, several cooperation agreements were signed between Afghan and Turkish economic institutions. The agreements are aimed at expanding commercial relations, promoting joint investment projects, and enhancing economic cooperation between the two countries.
The meeting was chaired by Süleyman Güllü, Chairman of the Türkiye–Afghanistan Joint Business Council, and was attended by Mohammad Akbar Azimi, the Islamic Emirate of Afghanistan’s Consul General in Istanbul, along with a number of businessmen and investors from both countries.
Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.
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