Pakistan, Afghanistan ink trade agreements amid border tensions
- In Reports
- 10:35 PM, Mar 29, 2024
- Myind Staff
Bilateral discussions took place between representatives of the Islamic Emirate of Afghanistan, led by Acting Minister of Industry and Commerce, Alhaji Nooruddin Azizi, and delegates from the Islamic Republic of Pakistan, headed by Deputy Minister of Commerce, Muhammad Khurram Agha.
During the two-day negotiations, the importance of separating business matters from political issues, prioritising the interests of both nations' citizens, and enhancing trade and transit relations without hindrances were underscored. As a result of these talks, several agreements were reached.
During the discussions between the two delegations, it was decided that the finalisation of the Afghanistan Trade and Transit Agreement would be completed within a span of two months.
Furthermore, an agreement was reached for the Pakistani delegation to facilitate the transfer of goods from international containers to regional containers (cross-stuffing) at the ports of Karachi within the following six months.
Both sides also agreed on preferential trade arrangements, wherein tariff preferences would be granted to ten export goods, comprising eight agricultural items and two industrial items.
Additionally, a consensus was reached to implement a temporary free license for truck traffic for a trial period of one year, commencing from May 2024. An accord was reached concerning the transportation of goods through the airports of both nations via multi-modal air transit, which is set to commence within the next two months.
In line with recent Pakistani initiatives concerning Afghanistan's transit goods, it was mutually agreed upon to eliminate the mandatory bank guarantee within a week and revert to the previous usage of insurance. Additionally, in consultation with all concerned parties, steps will be taken to address other impediments.
Both parties concurred on discontinuing goods-to-goods trade (barter) and instead, focus on establishing and enhancing banking relationships.
Discussions were held regarding the export of coal from Afghanistan to Pakistan, with the Pakistani side expressing its readiness to purchase it at international market prices. Both parties agreed that the disinfection of exported cotton in Afghanistan would suffice.
It's noteworthy to mention that the visit of the high-level delegation from the Islamic Republic of Pakistan, led by Deputy Minister Mohammad Khurram Agha from the Ministry of Commerce, was extended on the official invitation of the Ministry of Industry and Commerce of the Islamic Emirate of Afghanistan. The purpose of the visit was to bolster trade and business relations between the two nations.
Image Source: Business Standard
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