Daily Times

The Government of Pakistan must take immediate action to resolve the worsening trade crisis with Afghanistan and Central Asian countries (CIS), called upon Junaid Makda, President of the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI).

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’s economy. Makda 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.

The Khyber Pakhtunkhwa Government recently reduced the Infrastructure Development Cess (IDC) from 2% to 1%. However, it is still applied to both forward and reverse transit trade with Afghanistan, discouraging legitimate business and violating international commitments.

“Reducing IDC to 1% is a small relief, but transit trade should not be taxed at all,” Makda stated.

“This 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.”

Despite PAJCCI’s ongoing efforts, the situation has worsened, as per the press release issued today.

Transportation costs have spiked following the National Logistics Cell’s (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.

This closure has completely halted trade, stranding over 5,000 trucks carrying goods, including perishable items, resulting in significant financial losses.