KARACHI
\nPresident of the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), Junaid Makda, urgently calls on the Government of Pakistan to take immediate action to resolve the worsening trade crisis with Afghanistan and Central Asian countries (CIS). Makda emphasized that rising trade barriers, increasing transportation costs, and the ongoing Torkham Border closure are severely damaging cross-border business and causing significant losses to Pakistan\u2019s economy.
\nMakda reiterated concerns raised during the Special Investment Facilitation Council (SIFC) meeting in December 2024. He explained that SROs No. 1397(I)\/2023, 1380(I)\/2023, 1401(I)\/2023, and 1402(I)\/2023, issued in October 2023, triggered a sharp decline in trade and strained relations with neighboring countries. Although the Khyber Pakhtunkhwa Government recently reduced the Infrastructure Development Cess (IDC) from 2% to 1%, it is still applied to both forward and reverse transit trade with Afghanistan\u2014discouraging legitimate business and violating international commitments.
\n\u201cReducing IDC to 1% is a small relief, but transit trade should not be taxed at all,\u201d Makda stated. \u201cThis 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.\u201d Despite PAJCCI\u2019s ongoing efforts, the situation has worsened.
\nTransportation costs have spiked following the National Logistics Cell\u2019s (NLC) intervention; however, under the TIR Convention, NLC is actively contributing to trade facilitation, which is a positive aspect. Meanwhile, the Torkham Border has been closed since February 21, 2025, due to a dispute over Afghan border post construction.
\nThis closure has completely halted trade, stranding over 5,000 trucks carrying goods, including perishable items, resulting in significant financial losses. The prolonged closure has also diverted business to competing routes like Chabahar and Bandar Abbas. PAJCCI Senior Vice President Zia-ul-Haq Sarhadi and Vice President Pervez Lala expressed deep concern for small and medium-sized enterprises (SMEs).
\n\u201cLong delays and uncertainty are destroying trader confidence and scaring away investors,\u201d Sarhadi cautioned. \u201cThe government must take action now, or Pakistan risks losing its position as a key trade hub.\u201d Makda highlighted that under international protocols, Pakistan has a responsibility to facilitate trade for landlocked countries like Afghanistan.
\nFailing to meet these obligations not only damages Pakistan\u2019s global reputation but also gives an edge to regional competitors, with Indian ports already capturing diverted trade.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI President of the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), Junaid Makda, urgently calls on the Government of Pakistan to take immediate action to resolve the worsening trade crisis with Afghanistan and Central Asian countries (CIS). Makda emphasized that rising trade barriers, increasing transportation costs, and the ongoing Torkham Border closure are severely […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-467116","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n