Concerns Rise Over Misuse of Afghan Transit Trade Agreement by Pakistan

The misuse of the Afghan Transit Trade agreement has witnessed a significant surge, with smugglers exploiting this channel with impunity. Pakistan’s Foreign Office (FO) has rightfully voiced concerns over the rampant misuse of the transit trade deal with Afghanistan and has expressed its intent to address the issue with the Afghan government. However, it is expected that the Afghan government may respond with its customary denial, as has been the trend when Pakistan lodges complaints.

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One of the key contributing factors to this upsurge in misuse was the decision by the PTI government in October 2022 to halt the stamping of goods as “In Transit to Afghanistan” at Karachi Ports and Port Qasim. The government was under pressure from numerous parliamentarians representing Baluchistan and Khyber Pakhtunkhwa (KP) to suspend this practice. According to FO Spokesperson Mumtaz Zahra Baloch, this suspension has created a loophole where taxes and customs fees are not paid on products intended for Afghanistan when they are sent back to Pakistan.

As reported by CustomsNews.pk Daily on May 3, 2023, there have been allegations that several parliamentarians and certain security officials are involved in or patronize smuggling, particularly in Khyber Pakhtunkhwa and Baluchistan. Such elements have consistently hindered the implementation of rules and policies aimed at discouraging smuggling. Figures like Mohsin Dawar have vocally opposed checks on Afghan transit trade, which smugglers have exploited to bring illegal goods into Pakistan.

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The impact of these smuggled goods on the local economy has been severe, resulting in losses amounting to billions of dollars for Pakistan. Smugglers frequently employ counterfeit Afghan documents to obtain permits for the transportation of goods, making it challenging for authorities to identify illegal activities. Regrettably, only 20% of the goods listed in the Goods Declarations (GDs) can be effectively verified by customs through scanning of transit cargo.

The Federal Government’s facilitation of Afghan Transit Trade through Pakistan and the issuance of permits to Afghan refugees from the Commissioner of Refugees’ office in Islamabad have also contributed to the problem of smuggling. Additionally, support from individuals in positions of power and bribery offered to officials of anti-smuggling agencies further exacerbate the issue. The existing legal framework, with its lengthy and convoluted processes for punishing smugglers and those aiding the process, has not proven effective in deterring such activities.

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The writer is a lawyer, academic and political analyst. She has authored a book titled ‘A Comparative Analysis of Media & Media Laws in Pakistan.’ She can be contacted at: yasmeenali62@gmail.com and tweets at @yasmeen_9 

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