Taliban trade freeze with Pakistan hits KP traders, fears of major loss

Kabul: Taliban’s announcement about the suspension of trade ties with Pakistan has sparked concerns among traders and customs clearing agents in Khyber Pakhtunkhwa as they fear major economic implications for the local business community, local media reported.

Reacting to Taliban’s announcement, Senior Vice-President of Pak-Afghan Joint Chamber of Commerce and Industry Ziaul Haq Sarhadi expressed fear that Pakistan would lose a big market in Afghanistan and Central Asian States, with whom Pakistan recently signed trade agreements, Pakistan’s leading daily Dawn reported.

Sarhadi stated that Pakistan was exporting fresh fruits, cement, medicines, surgical items, agricultural tools, fabrics, shoes, cosmetics, sanitary items, plastic pipes and several other locally manufactured products worth USD 100-200 million per month to Afghanistan.

“We are the ultimate losers due to the closure of our border with Afghanistan as Kabul has more choices than us,” he said.

Sarhad Chamber of Commerce and Industry former president Zahidullah Shinwari stated that the suspension of trade with Afghanistan would seriously impact the tax collection of Federal Bureau of Revenue, which used to collect millions of rupees from exports and imports at all border points on a daily basis. He said that industry in Khyber Pakhtunkhwa would be particularly impacted due to trade suspension with Afghanistan as the province’s industry was heavily dependent on Afghanistan for its products.

“Much of our big industry, especially cement factories, are run by coal imported from Afghanistan, so suspension of coal import from Afghanistan will adversely affect the production capacity of our big industries,” he said.

He warned that the permanent trade suspension with Afghanistan would lead to closure of most of industrial units in Khyber Pakhtunkhwa with hundreds of industrial labour becoming jobless, while the owners would go bankrupt, according to the Dawn report.

Earlier, reports claimed that Afghanistan has asked its business community to stop importing medicines from Pakistan within three months, alleging it is of inferior quality, and has emphasised that traders seek alternative routes for trade “instead of relying” on Islamabad.

Afghanistan’s Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar has “warned that after this notice”, Kabul will not cooperate with or listen to traders who continue trading with Pakistan, reported Tolo News on Wednesday.

“Our health sector’s main problem is the import of low-quality medicines from Pakistan. I strongly urge all medicine importers to immediately find alternative supply routes. Those who have contracts or purchases in Pakistan are given three months to settle their accounts and wind up their work,” the report quoted Baradar.

The Taliban leader made several key recommendations regarding the protection and sustainability of national trade in a meeting with Afghanistan’s business houses.

Reports are coming in from Afghanistan-Pakistan, where trade routes have remained closed for about a month, that markets in both countries are experiencing severe fluctuations and unprecedented price hikes.