Booting trade via Torkham

Chief Minister Mehmood Khan visited Torkham border with Afghanistan and inspected the arrangements that are being made to keep the border open for trade activities round the clock. It may be recalled that Prime Minister Imran Khan had announced to develop a mechanism to maintain the border point all time open for transportation of trade goods and other vehicular traffic. He will formally inaugurate the 24 hours open border facility when all necessary arrangements are completed. However, the Chief Minister has directed for night operation at Torkham on trial basis and provision of lights to facilitate bilateral trade between Pakistan and Afghanistan.

Exports from Pakistan took a quantum leap to Afghanistan during 2002-07. Both trading partners strictly observed the World Trade Organisation Regime of free trade and fair play to avoid the levy of countervailing duties. The composition of exports included a wide range of primary commodities and value added goods. Rice, wheat flour, poultry, meat, vegetables, fruits, sugar, cement, building material and medicines were the major export items. Because of low electricity and gas tariffs and prices of petroleum products which kept the transportation charges stable, exports products from Pakistan enjoyed comparative advantage in the market of Afghanistan over the identical products which were being imported from India and China.

The bilateral trade gave double advantage to Afghan importers as the surplus import products were being exported to the Central Asian States and even to Ukraine and other European States that got independence from the collapse of Soviet Union. But from 2008 and onwards exports to Afghanistan moved on the downward trajectory for various reasons. The Afghan government imposed both tariff and non-tariff barriers. The sharp rise in energy inputs and technological stagnation eroded competitiveness of exports to Afghanistan. It provided an opportunity to other countries of the region to export its high quality but at the same time inexpensive value added items to Afghanistan through Iran. Consequently, the market of Afghanistan shrank significantly for the finished goods of Pakistan that used to be exported to Afghanistan. But still Pakistan has an edge over its competitors in the export of primary commodities and its potential needs to be exploited.

After the political settlement of Afghanistan and restoration of peace and stability there, not only the bilateral trade will get impetus but the quantum of regional trade through Torkham will also start and gain momentum. Fare share in the volume of growing regional trade can be secured only when the issues pertaining to the induction of modern technologies in the industrial sector, skill development and product innovations are addressed well in time. To cope with humming trade activities in future state-of-the art custom clearance system has to be put in place. Moreover, strict monitoring of the officials of law enforcing departments like police will also be necessary to eradicate the well entrenched culture of getting off-the- books payments from loaded trawlers on Torkham-Peshawar road as the drivers always complain against this extortionist behavior of these officials. It is a matter of everyday observation which brings misnomer for the Pakistan.

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