ISLAMABAD: The Afghan Transit Trade has caused a negative impact on the economy of Pakistan and has been one of the basic reasons for the black economy prevailing in the country, a report revealed on Wednesday.
The report said that Afghan authorities misstate the rates of the Aghan Transit Trade items, which results in an obvious difference between the reported and real values of the commodities. These commodities are brought back to Pakistan illegally for sale.
According to the Bureau of Statistics, Afghan traders save 3 quarters of their trade commodities from customs duty by smuggling. Thus, a local media outlet reported that Pakistan sustained annual losses to the tune of around $3 billion.
These traders tamper with the tracking system installed on container trucks, which negatively affects the tracking mechanism, the report added.
Afghan Trucks Sell Trade Items at Cheaper Prices
These trucks are used to sell the Afghan trade commodities at lower prices in the black market in the country, posing a risk to local industry.
Narcotics and other contraband commodities are also used to smuggle with the transit trade. Fake bills are also causing complications in keeping the tracking record.
Afghan imports under the transit trade have increased by 67 percent and soared to $6.71 billion value in February 2022-23, while the imports were $4 billion in the previous year.
The import products under the ATT included electricity items, electronics equipment, artificial fibre, tyre tubes, and tea, etc.
This increase in imports has decreased the actual imports of the country considerably. Manufacturing of commodities of cloth made with artificial filament has decreased by 48%, and electronic equipment and tyre and rubber imports have dropped by 62% and 42%, respectively.
According to the report, the import of tea was reduced by 51 percent, machinery 34%, and vegetables and fruits 46%.
Afghan Transit Trade has negatively affected the small and medium-scale industries and the economy of Pakistan.
