Exports to Afghanistan have dropped by more than 40 per cent during 2006-07, reflecting a discouraging trend among exporters due to higher duty structure levied by Kabul and new regulatory procedures introduced by the Pakistan government, a news report said. Latest figures compiled by the institutions and traders suggest exports to Afghanistan dropped to $600 million during the last fiscal 2006-07 compared to $1.2 billion registered during 2005-06, the report appearing in the leading English language daily The News said. Exports to Afghanistan are on the decline mainly because of discriminatory policies, said a Peshawar-based exporter. The trade policy 2005-06 made abrupt procedural changes to settle claims of rebate on taxes on export to Afghanistan, making it obligatory on the exporters to produce imports clearance by Afghan Customs authorities across the border. He said the new procedure has created a lot of problems for the exporters because most of the Afghan importers were reluctant to provide copies of requisite documents to Afghan Custom authorities across the border. The current financial year began on a positive note as Pakistan s exports rose 10.73 per cent in July to a total of $1.485 billion. Figures released by Federal Bureau of Statistics showed imports grew 4.67 per cent on year to $2.574 billion in July. The trade deficit narrowed to $1.088 billion from $1.117 billion in July 2006. The government raised the export target for the current fiscal year to $19.2 billion. The exports during last financial year totaled $17.01 billion, below the $17.87 billion government target. Imports for the current fiscal year are forecast to reach $32.6 billion, after totaling $30.54 billion in the last fiscal year. The government predicts a trade deficit of $13.4 billion in the current fiscal, slightly lower than the $13.49 billion recorded in the last fiscal. However, the exporters regret the way country is losing its export share to Afghanistan, one of the nearest and potential market of Pakistani products. There are several reasons, which need to be addressed for a boost in exports to Afghanistan, said Ilyas Ahmed Bilour, Chairman Pak-Afghan Chamber of Commerce and Industry. We have forwarded some proposals to both Pakistan and Afghan governments, which are expected to get serious consideration from both sides. He said the proposals were discussed during a recently concluded Pak-Afghan Peace Jirga, during which boost in bilateral trade was also incorporated in the final declaration with the consent of traders from the two sides. The Afghan government has evolved a discriminatory duty structure, which facilitates the transit trade but doesn t allow the regular exports under the same structure, said Bilour. The situation is not disturbing for the Pakistani exporters but it is also supported by the Afghan importers, who endorsed our proposals. Pakistan s exports to Afghanistan started jacking up in 2002, following higher demand of Pakistani products in Afghanistan, which lacks enough manufacturing base to cater to its domestic demands. The bilateral trade climbed up from $492 million in 2003-04 to $1.63 billion in financial year 2005-06 mainly because of exports.
