Pakistan Agrees to Resolve 10% Spike in Import Duty on Afghan Transit Trade

Pakistan and Afghanistan have agreed to jointly resolve a dispute pertaining to a 10 percent increase in import duty on Afghan transit trade. This was decided during the visit of a Pakistani team to Kabul from March 24 to 27, 2024. The delegation was led by Commerce Secretary Khurram Agha who met the Afghan Minister of Commerce Nooruddin Azizi and other government officials. During the visit, discussions revolved around bilateral and transit trade. Key points of negotiation included the implementation of the Preferential Trade Agreement and the Temporary Entry Document (TAD) for commercial vehicle drivers. Both sides also addressed challenges concerning multi-modal air transit and transit trade. Both sides reiterated their commitment to fostering trade and commerce. Particular attention was given to tackling the issue of foreign exchange leakage through Afghan transit trade. Pakistan assured that its negative list would be duly managed, while specific items such as confectionery, chocolates, footwear, machinery, blankets, home textiles, and garments would be subject to a 10 percent duty. According to Pakistani authorities, the imposition of additional duties on Afghan transit trade helped deter illicit trade. Both nations pledged to enhance monitoring of goods involved in transit trade to ensure compliance and strengthen trade relations.