PAJCCI Embraces Trade Pact, Urges Solutions for Persistent Challenges

Karachi: The Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) has expressed approval of the recent Preferential Trade Agreement (PTA) between Pakistan and Afghanistan, signed on July 23, 2025. This agreement, which significantly lowers tariffs on several agricultural goods, was finalized by officials from both nations and marks a significant advancement in bilateral trade, according to PAJCCI Chairman Muhammad Zubair Motiwala.

Despite this development, PAJCCI President Juanid Makda has raised concerns about ongoing issues that continue to hinder trade between the two countries. The bilateral and transit trade, which once peaked at $2.5 billion, has seen a decline to $1.2 billion in 2024.

In a letter addressed to the Minister of Interior, Makda highlighted several obstacles, including the absence of a stable trade policy and banking inefficiencies, which have resulted in payment disputes and pressure from the Federal Investigation Agency on businesses. Additionally, issues such as temporary Electronic Import Form waivers, visa delays for Afghan businessmen, and the Khyber Pakhtunkhwa Infrastructure Development Cess continue to pose challenges.

Makda also noted that recent Statutory Regulatory Orders have reduced trade volumes and called for improved private-sector representation in the PTA Implementation Committee. This committee, comprising representatives from customs and agriculture ministries, could benefit from the insights of PAJCCI to tackle these challenges effectively.

To realize the $7 billion trade potential, PAJCCI advocates for collaborative efforts to develop a long-term trade policy, streamline payment processes, simplify visa procedures, and review restrictive regulations.

Under the leadership of Chairman Motiwala and Co-Chairman Khan Jan Alokozai, PAJCCI remains committed to working with relevant authorities to enhance Pakistan’s role as a trade hub for Afghanistan and Central Asian Republics. The organization looks forward to continued dialogue to ensure progress in Pakistan-Afghanistan trade relations.