Increase font size Decrease font size Reset font size

PAJCCI complains about border closure, trade barriers

Bureau Report 2025-03-15
PESHAWAR: Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) president Junaid Makda on Friday called for immediate measures to resolve Pakistan`s trade issues with Afghanistan and Central Asian states.

In a statement issued here, Mr Makda said rising trade barriers, increasing transportation costs and the ongoing Torkham border closure were severely damaging cross-border business and causing significant losses to Pakistan`s economy.

He said some SROs issued in Oct 2023 caused a sharp decline in the volume of Pakistan`s trade with neighbouring countries and strained mutual relations.

The PAJCCI leader said though the Khyber Pakhtunkhwa government recently halved the two per cent infrastructure development cess, the old rate was still applied to both forward and reverse transit trade with Afghanistan, discouraging legitimate business and violating international commitments.

He said reducing IDC to one per cent was a small relief but transit trade should not be taxed at all.

`This tax, combined with the border closure, is pushing traders to use Iranian ports instead of Pakistani routes, causing long-term harm to our trade network,` he said.

Mr Makda said the closure of Torkham Border since Feb 21, 2025, due to a dispute over Afghan border post construction had completely halted mutual trade, stranding over 5,000 trucks with perishable and other items and thus, causing significant financial losses.

He said the prolonged border closure had also diverted business to other routes like Chabahar and Bandar Abbas.

The PAJCCI leader said under international protocols, Pakistan had a responsibility to facilitate trade for landlocked countries like Afghanistan.

He said failing to meet those obligations not only damaged Pakistan`s glaobal reputation but also gave an edge to regional competitors, with Indian ports already capturing diverted trade.

Mr Makda supported and endorsed national security measures and called for balancing security with trade facilitation.

He urged the government to implement necessary actions on border management, lower transportation costs, and eliminate IDC on transit trade to help businesses survive.

`The prime minister`s efforts to strengthen ties with Uzbekistan are a step in the right direction but if trade obstacles are not addressed quickly, Pakistan will miss the opportunity to become a major trade corridor and unlock massive economic potential,` he said.

The PAJCCI leader urged the government to act without delay and said every passing day costs Pakistan valuable trade, investor trust, and economic stability.

PAJCCI senior vice president Ziaul Haq Sarhadi and vice president Pervez Lala also expressed concern about the future of small and medium-sized enterprises and said long delays and uncertainty were destroying trader confidence and scaring away investors.