Smuggling from Afghanistan, Iran threatening industrial expansion: PEW
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Under invoicing and misdeclaration going out of control
The Pakistan Economy Watch (PEW) on Sunday said increased smuggling from Afghanistan and Iran has emerged as serious threat to industrial expansion in Pakistan.
Smuggling has been damaging various industrial sectors resulting in loss of revenue and unemployment which must be tackled on preference, it said.
Tensions among Pakistan, Afghanistan and Iran should not be allowed to hurt trade and plans to explore central Asia and import energy, said Dr. Murtaza Mughal, President PEW.
He said that Pakistan and Afghanistan are big trade partners despite difference over issues relating to refugees, smuggling of drugs, arms and other things, supporting militants and way to handle terrorism.
Similarly, Pak-Iran trade has a great potential which has been overshadowed by the issue of Indian spy that should be tackled properly lest it damage bilateral ties.
Bilateral trade with neighbours continue to face problems like lack of insurance facilities, security risks, taxation issues, weak banking and payment mechanisms, fragile dispute resolution and documentation system.
He said that Afghanistan is the only bridge for Pakistan to reach central Asia offering limitless opportunities which needs attention of the policymakers.
Pakistan exports to Afghanistan comprised 24.4 percent of Kabul’s imports but now it is coming down which can be countered through various steps including a joint economic zone near border, he opined.
Pakistan and Afghanistan have decided to boost bilateral trade by 100 percent to five billion dollars annually for which barriers must be reduced and effective measures to build confidence must be taken, he demanded.
