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Trade with Kabul Review of tariff regime sought

Tuesday, January 17th, 2012

By Amin Ahmed

As Pakistan-Afghan Joint Economic Commission began its session in Islamabad on Monday, Finance Minister Abdul Hafeez Shaikh underlined the need for a comprehensive review of current tariff and non-tariff regime to enhance the pace of bilateral trade between the two countries.

Inaugurating the joint economic session together with his Afghan counterpart Hazrat Omar Zakhilwal, the finance minister said that the two countries should carry out identification of ways to diversify tradable goods and services; transacting informal trade through lawful channels, and increased interaction between Pakistan-Afghan private sectors.

For the realisation of suggested measures, Hafeez Shaikh proposed early operationalisation of the memorandum of understanding signed between the Federation of Pakistan Chambers of Commerce and Industry and the Afghan Chamber of Commerce and Industry (ACCI) in March 2008 for establishment of Pakistan-Afghan Joint Chamber of Commerce.

The Ministry of Commerce has already approved registration of Pakistan-Afghan Joint Chamber of Commerce, and Pakistan proposes its inaugural session on the sidelines of the current joint economic commission meeting, Hafeez Shaikh said.

In the meantime, the Japanese government`s special representative on Afghanistan and Pakistan, Ambassador Tadamichi Yamamoto arrived in Islamabad on Monday.

He is expected to participate in the deliberations of the joint economic commission and hold talks with finance ministers of Pakistan and Afghanistan, official sources told Dawn.

In his inaugural speech, Hafeez Shaikh stated that Pakistan recognises that the new Afghan Transit Trade Agreement was now fully operational `but we are more than willing to discuss any issue that leads to furthersmooth bilateral trade relations between the two countries.

The finance minister stated that bilateral trade environment needs support of an efficient transportation network and sound trade infrastructure. Pakistan is committed to G8 initiatives for PeshawarJalalabad Expressway as well as Peshawar-Jalalabad rail link and to complete the Torkham-Jalalabad highway project, he said.

The finance minister said that Pakistan has embarked upon a major reform programme that aims at fiscal stabilisation, mobilising domestic resources, phasing out subsidies, restructuring the power sector and other public sector enterprises and strengthening social safety nets.

`We are working towards laying the foundation for a new growth model driven by domestic demand with a flexible exchange rate that moves in response to market forces with a more open, markedbased economy and a more developed and diversified financial system,` said Hafeez Shaikh.

The finance minister stated that the biggest challenge Pakistan was encountering was to rebalance the economy that will achieve multiple goals of high economic growth, employment and reasonable price stability in an uncertain international economic and financial environment.The volume of PakistanAfghan trade has risen from less than $200 million in 200001 to $2.5 billion in 2010-11, yet it does not reflect the true potential that exists between the two countries, notes the finance minister.

According to an official announcement, the joint commission will review the status of $300 million grant committed by Pakistan for the reconstruction and rehabilitation of Afghanistan.

A number of projects have already been started by Pakistan utilising the grant to build infrastructure, provide transport and educational and health facilities.

Originally appeared in the dawn


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