ISLAMABAD: Pakistan’s trade with Afghanistan and Iran has come to a standstill as a large number of containers pile up at the border stations in Balochistan for want of import form (I-form).
Containers have begun to accumulate at the customs stations of Taftan (at Iran border) and Chaman (at Afghan border) after the implementation of the form from Sept 1.
The State Bank of Pakistan (SBP) has made it mandatory that no goods declaration will be allowed for import unless an I-form, duly approved by the commercial banks, is attached with it.
The decision mostly affected trade in fresh fruit, vegetables and other perishable products.
However, an official said the customs collectorate has allowed clearance of perishable products after guarantees from traders. “But this is not a permanent solution,” he added.
Traders in Balochistan have urged the federal government to consider their genuine problems. The Chaman Chamber of Commerce and Industry has written a letter to Finance Minister Ishaq Dar asking him to review the decision, especially keeping in view the prevailing condition in the province.
Balochistan mostly lacked an industrial base and relied on imports from Afghanistan and Iran, the said.
“No SWIFT code has been allocated to commercial banks in Afghanistan. Hence, business with Afghanistan cannot take place through normal banking channel. Either it has to be in barter mode or it has to be routed from some third country,” said the letter, a copy of which is available with .
In the wake of introduction of the I-form, the requirement of a SWIFT code of the commercial banks of exporting country Afghanistan is mandatory. As no such code has been allotted to banks in Afghanistan, imports from that country have come to a standstill.
The chamber demands exemption for the area until the establishment of banking channels.
Before this decision, the Chaman border remained closed for two weeks due to which traders of perishable products suffered heavy losses.
The problems faced by Balochistan traders after the I-form’s introduction were also mentioned in a letter of Quetta’s customs collectorate which was sent to Karachi customs house for taking up with the SBP.
Traders believed that the form has been introduced without considering the ground realities of the province.
Pakistan and Iran had no formal banking relations during the decades-old economic sanctions on Tehran. The mode of trade between the two countries remained barter trade or other informal channels. Even after lifting of international sanctions, banking channels with Iran have yet to be established.
Major imports from Afghanistan are fresh fruits and vegetables. Traditionally, the orchards of fruits in Afghanistan are bought many months in advance by the Pakistani importers, most of whom operate on a seasonal basis.
Pakistan has waived off the export form for export of perishable goods to Afghanistan.
According to the customs letter, the banks in Qandahar and Herat and some other Afghan cities have not been fully developed which hindered transfer of money through official channels.
Moreover, the traders and clearing agents in Chaman and Taftan are technically not on a par with the rest of the country. There are also issues of capacity like internet connectivity, infrastructure, training and education in these areas.
Pakistan’s counsel general in Qandahar has also raised the issue with Pakistani customs authorities that the introduction of I-form has hit hard Afghani exporters of fresh fruit and hundreds of vehicles have been stranded on the other side of the border.
National Bank of Pakistan’s branch in Chaman is also facing difficulty to process I-form due to lack of training.
The customs authorities feared that the decision, if not reviewed, might discourage legal trade and traders may resort to smuggling as border remains largely porous.
