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PESHAWAR, Dec 12 (APP):Sarhad Chamber of Commerce and Industry (SCCI) and Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) signed a Memorandum of Understanding (MoU) for cooperation among both the trade entities with an objective of encouraging bilateral trade activities between Pakistan and Afghanistan.
The MoU was signed during visit of President of PAJCCI, Junaid E. Makda to Sarhad Chamber for discussion with businessmen of the region.
President SCCI, Fazal Muqeem Khan, Senior Vice President, Abdul Jalil Jan, SVP PAJCCI, Zia-ul-Haq Sarhadi and noted businessmen of Khyber Pakhtunkhwa were present on the occasion.
According to MoU, it was agreed that to build a dependable, pragmatic and advantageous relationship between Pakistan and Afghanistan, both the chambers would initiate establishment of friendly cordial relations through an increased cooperation among the industrialists, businessmen and entrepreneurs of the region.
SCCI and PAJCCI will also work to foster a spirit of better cooperation and coordination between business communities of both the countries in general and their respective members in particular for the development of trade and commerce.
Both trade bodies will play their facilitating role for encouraging bilateral trade activities, exchange of trade delegations, participation in trade fairs and exhibitions.
Joint efforts would also be made for establishing effective consultation, cooperation and exchange of information on bilateral trade and relationship.
Both the chambers would also appoint permanent staff to serve as focal point for execution of this MoU, reads the agreement.
Earlier, President SCCI, Fazal Muqeem Khan in his welcome address apprised President PAJCCI about impacts of two percent Infrastructure Development Cess (IDC) levied by Khyber Pakhtunkhwa government on import, export and transit trade.
The decision of two percent cess and other impediments have reduced Pak-Afghan trade volume to less than one billion dollar, Muqeem claimed.
The trade volume between Pakistan and Afghanistan has the potential of more than three billion US dollar, but unfortunately it is reduced to less than one billion dollar, he continued.
After levy of two percent cess, number of daily clearance of goods laden trucks at Torkhem border have been drastically dropped from four to five hundreds on daily basis to mere five to ten, badly impacting commercial activities in the region, President SCCI added.
He said Baluchistan government also imposed same cess, but forthwith withdrew the decision within a couple of days after realizing its impact on trade.
However, in KP, he continued, apart from imposition of cess on import and export, the levy has also been implemented on reverse cargo under Transit Trade Agreement.
Speaking on the occasion, President PAJCCI, Junaid Mukda said he has done thorough research on IDC cess and found that it is against all the international treaties, allowing land lock countries to avail transit trade facility from neighbouring country.
Mukda said enforcement of IDC by KP government has been made on Good Documents (GDs) which is infringement on the right of Ministry of Commerce and Trade.
He said KP government has right to implement such cess on weight of the truck but on percentage of GDs.
SVP PAJCCI, Zia-ul-Haq Sarhadi and leading Afghan businessman, Shahid Hussain also spoke on the occasion and mentioned difficulties being faced by business communities due to enforcement of two percent IDC and other issues.
They also appreciated the efforts being made by President PAJCCI, Junaid Makda for promotion of Pak-Afghan trade and removal of hindrance in commercial activities in the region.
The MoU will serve as catalyst in improving regional trade particularly between Pakistan and Afghanistan, proving beneficial for hundreds of thousands of people on both sides of the border, Zia hoped.