September 21, 2021: The State Bank of Pakistan has not issued the notification to facilitate trade in Pak rupee despite the announcement by the honorable finance minister, causing the bilateral trade to suffer, Muhammad Zubair Motiwala, Chairman Pakistan-Afghanistan Joint Chamber of Commerce and Industry, stated at the 3rd Stakeholders Meeting held in Karachi.
He further specified that the trade has declined by about 50% and if appropriate measures are not taken instantly then it may further deteriorate. He embarked upon that the current situation in Afghanistan has brought immense business opportunities for Pakistan and if the trade in PKR would be allowed, it will not only strengthen the rupee value but would also help reduce our current trade deficit drastically.
Afghanistan has been facing an acute shortage of US dollars since the Taliban takeover, creating fears of an economic collapse leading to another humanitarian crisis and refugee influx in the region. Motiwala told the forum that Afghan businessmen are willing to use the Pakistani currency as a temporary arrangement since they are aware of the depleting dollar reserves of their country.
Motiwala added that “It is time we move forward to increase our export footprint in Afghanistan and make it our second-largest export destination. With a relatively more friendly government in Afghanistan, the trade can easily be enhanced to $10 billion in the long run and $5 billion within the next couple of years.”
The highest export volume from Pakistan to Afghanistan was recorded at $2.7 billion in 2010-11, after which it has seen drastic gravity, mainly attributed to aggressive penetration by Indian exporters by leveraging their government’s favorable relations with the previous administrations in Kabul. India’s significant investment created major roadblocks for Pakistani businessmen, however, due to the stagnant banking system prevailing in Afghanistan at the moment, if the Government will facilitate rupee trade, then the trade quantum can move up to $2 billion in a couple of months with an incremental graph.
President PAJCCI, Jawed Bilwani, preceded the conversation, that the shortage of containers is causing a huge hurdle in the current momentum. Currently, around 350 containers are in transit, and delays caused by procedural hindrances is aggravating the situation. He further sought GOP to ensure providing secure land routes to trade not only with Afghanistan but also to reach countries like CIS and Iran.
Director PAJCCI, Junaid Makda emphasized that the finalization of the APTTA agreement and the facilitation in accessing CIS countries is of critical importance at this time. He, further added, that secure and reliable land transit through Afghanistan is essential for Pakistan’s business growth. He urged the Government of Pakistan to define a framework for safeguarding business interests across the region proactively.
Motiwala believes, that the land of Afghanistan has potential investors who desire to invest in Pakistan, but due to the prevailing policies and structure, it seems unfeasible. It should be immediately looked into to encourage regional investments.
Chairman PAJCCI urged the Honorable Prime Minister, Minister of Finance, and Minister of Foreign Affairs to pave ways for bonding economic ties at the diplomatic levels as soon as possible for reaping significant economic benefits that would have a positive impact across the region.
He concluded by saying that the sanctity of Pakistan and Afghanistan is of prior concern and PAJCCI stands by all relevant measures that are required to be taken, however proactive economic measures will aid in enhancing the business spectrum for both countries.
Press Release
26968
