Latest news with #JawadPaul
Express Tribune
4 days ago
- 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
5 days ago
- 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
23-07-2025
- Business
- Business Recorder
Pakistan, Afghanistan ink Preferential Trade Agreement: report
In a key development on the economic front, Pakistan and Afghanistan have inked a Preferential Trade Agreement (PTA) under which both countries will significantly reduce tariffs on each other's imports, reported Aaj News on Wednesday. The agreement was inked at a ceremony held in Islamabad between Afghan Deputy Minister for Commerce and Industry Ahmadullah Zahid and Pakistan's Commerce Secretary Jawad Paul. A PTA is a trade pact between two or more countries where they agree to reduce or eliminate tariffs and other trade barriers on certain goods and services traded between them. Under the agreement, both countries have agreed to reduce tariff rates from 60% to 27%. As per the report, the step has been taken to promote bilateral trade and increase economic cooperation in the region. The agreement will come into effect from August 1, 2025 and will be effective for an initial period of one year. Under the agreement, Pakistan will reduce duties on grapes, pomegranates, apples and tomatoes imported from Afghanistan, while Afghanistan will reduce tariffs on mangoes, quinoa, bananas and potatoes coming from Pakistan. Earlier, Business Recorder reported that as per the proposed draft PTA, recognising the importance of facilitating bilateral trade between the Islamic Emirate of Afghanistan and the Islamic Republic of Pakistan, the Ministry of Industry and Commerce, Afghanistan (MoIC) and the Ministry of Commerce, Pakistan (MoC) agree to implement an Early Harvest Programme (EHP) to enhance trade flows and economic cooperation between the two countries. Article 1: Preferential Tariff Treatment: (i) the Contracting Parties — the Islamic Emirate of Afghanistan ('Afghanistan') and the Government of Pakistan ('Pakistan'), hereinafter collectively referred to as the 'Contracting Parties' and individually as a 'Contracting Party' — agree to provide Preferential Tariff Concessions on a selected list of agricultural goods under the Early Harvest Program; and (ii) the concessions shall be implemented by reducing tariffs and duties on the following products originating in the respective territories and destined for the other: Afghanistan exports: tomatoes, grapes, apples, and pomegranates while Pakistan will export potatoes, kinnows, bananas and mangoes Article 2: Development of Preferential Trade Agreement (PTA): The Contracting Parties agree to initiate negotiations for a comprehensive Preferential Trade Agreement (PTA) based on the performance of the Early Harvest Program and mutual satisfaction of both sides. Article 3: Rules of Origin: The agricultural products listed above must be: (i) harvested, picked, or gathered in the exporting country; (ii) wholly obtained, and (iii) accompanied by a Certificate of Origin issued by the designated authority of each country to qualify for preferential treatment. Article 4: Certification; (i) for Pakistan, the Certificate of Origin shall be issued by the Trade Development Authority of Pakistan (TDAP); and (ii) for Afghanistan, the Certificate of Origin shall be issued by the Ministry of Industry and Commerce (MoIC). Article 5: Implementation Date: The Early Harvest Program shall be implemented starting 1st August 2025. Article 6: Duration and Reciprocity: (i) the tariff concessions shall be granted for a period of one year, from 1st August 2025 to 31st July 2026 ;(ii) the program may be extended upon mutual agreement; and (iii) all concessions are to be based on reciprocity and parity. Article 7: PTA Implementation Committee: a PTA Implementation Committee shall be formed to oversee the Early Harvest Program. It shall: (i) be led by MoIC (Afghanistan) and MoC (Pakistan); (ii) include representatives from Customs and Agriculture Ministries of both countries ;(iii) meet on a monthly basis, and ;(iv) be responsible for monitoring, evaluation, and recommending improvements to the programme.
Arab News
23-07-2025
- Business
- Arab News
Afghanistan and Pakistan sign preferential trade deal to slash tariffs on key fruits, vegetables
ISLAMABAD: Afghanistan and Pakistan have signed a Preferential Trade Agreement (PTA) to reduce tariffs on eight agricultural products, the Afghan embassy in Islamabad announced on Wednesday, in a rare move of economic cooperation between the two neighbors with often-tense ties. The agreement, signed by senior commerce officials from both countries, will reduce customs duties on four Afghan exports to Pakistan — grapes, pomegranates, apples, and tomatoes — and four Pakistani exports to Afghanistan — mangoes, kinnows, bananas, and potatoes. Tariff rates on these items, which previously exceeded 60%, will now be capped at 27%. 'This agreement will be effective for a period of one year, commencing on August 1, 2025,' the Afghan embassy said on X. 'It is renewable and also allows for the inclusion of additional items in the future.' The deal was signed by Mullah Ahmadullah Zahid, Deputy Minister at Afghanistan's Ministry of Industry and Commerce, and Jawad Paul, Pakistan's Deputy Commerce Minister. The agreement comes at a time of strained political and security relations between Kabul and Islamabad, marked by border closures, mutual accusations over cross-border militant activity, and reduced formal trade volumes since the Taliban returned to power in 2021. Still, both countries remain heavily reliant on overland trade routes, and fruit exports have long played a vital role in seasonal cross-border commerce. In the first half of 2025, Pakistan and Afghanistan's bilateral trade reached nearly $1 billion, with Afghan exports to Pakistan totaling $277 million and Pakistan's exports to Afghanistan reaching $712 million. This growth is partly attributed to increased Pakistani exports, including medical supplies, parboiled rice, and sugar. However, trade volume is still below potential, with estimates suggesting it could reach $8 to $10 billion annually if obstacles are overcome. Obstacles to trade between Pakistan and Afghanistan include border closures, security concerns, and issues with trade facilitation. Specifically, frequent closures of border crossing points like Torkham and Spin Boldak, triggered by political tensions or security incidents, disrupt trade flows and cause financial losses for businesses. Additionally, challenges related to trade facilitation, customs procedures, and transit infrastructure further hinder the smooth movement of goods.
Business Recorder
23-07-2025
- Business
- Business Recorder
Pakistan, Afghanistan ink PTA: report
In a key development on the economic front, Pakistan and Afghanistan have inked a Preferential Trade Agreement (PTA) under which both countries will significantly reduce tariffs on each other's imports, reported Aaj News on Wednesday. The agreement was inked at a ceremony held in Islamabad between Afghan Deputy Minister for Commerce and Industry Ahmadullah Zahid and Pakistan's Commerce Secretary Jawad Paul. A PTA is a trade pact between two or more countries where they agree to reduce or eliminate tariffs and other trade barriers on certain goods and services traded between them. Under the agreement, both countries have agreed to reduce tariff rates from 60% to 27%. As per the report, the step has been taken to promote bilateral trade and increase economic cooperation in the region. The agreement will come into effect from August 1, 2025 and will be effective for an initial period of one year. Under the agreement, Pakistan will reduce duties on grapes, pomegranates, apples and tomatoes imported from Afghanistan, while Afghanistan will reduce tariffs on mangoes, quinoa, bananas and potatoes coming from Pakistan. Earlier, Business Recorder reported that as per the proposed draft PTA, recognising the importance of facilitating bilateral trade between the Islamic Emirate of Afghanistan and the Islamic Republic of Pakistan, the Ministry of Industry and Commerce, Afghanistan (MoIC) and the Ministry of Commerce, Pakistan (MoC) agree to implement an Early Harvest Programme (EHP) to enhance trade flows and economic cooperation between the two countries. Article 1: Preferential Tariff Treatment: (i) the Contracting Parties — the Islamic Emirate of Afghanistan ('Afghanistan') and the Government of Pakistan ('Pakistan'), hereinafter collectively referred to as the 'Contracting Parties' and individually as a 'Contracting Party' — agree to provide Preferential Tariff Concessions on a selected list of agricultural goods under the Early Harvest Program; and (ii) the concessions shall be implemented by reducing tariffs and duties on the following products originating in the respective territories and destined for the other: Afghanistan exports: tomatoes, grapes, apples, and pomegranates while Pakistan will export potatoes, kinnows, bananas and mangoes Article 2: Development of Preferential Trade Agreement (PTA): The Contracting Parties agree to initiate negotiations for a comprehensive Preferential Trade Agreement (PTA) based on the performance of the Early Harvest Program and mutual satisfaction of both sides. Article 3: Rules of Origin: The agricultural products listed above must be: (i) harvested, picked, or gathered in the exporting country; (ii) wholly obtained, and (iii) accompanied by a Certificate of Origin issued by the designated authority of each country to qualify for preferential treatment. Article 4: Certification; (i) for Pakistan, the Certificate of Origin shall be issued by the Trade Development Authority of Pakistan (TDAP); and (ii) for Afghanistan, the Certificate of Origin shall be issued by the Ministry of Industry and Commerce (MoIC). Article 5: Implementation Date: The Early Harvest Program shall be implemented starting 1st August 2025. Article 6: Duration and Reciprocity: (i) the tariff concessions shall be granted for a period of one year, from 1st August 2025 to 31st July 2026 ;(ii) the program may be extended upon mutual agreement; and (iii) all concessions are to be based on reciprocity and parity. Article 7: PTA Implementation Committee: a PTA Implementation Committee shall be formed to oversee the Early Harvest Program. It shall: (i) be led by MoIC (Afghanistan) and MoC (Pakistan); (ii) include representatives from Customs and Agriculture Ministries of both countries ;(iii) meet on a monthly basis, and ;(iv) be responsible for monitoring, evaluation, and recommending improvements to the programme.
