A Senate panel was Tuesday informed that Afghanistan has rejected the proposal of establishment of border markets, while the physical structure of the border market with Iran is in place; however, it has not become operational due to excessive delays from the Iranian government and lack of road connectivity in the region.
The Senate Functional Committee on Problems of Less Developed Areas, which met with Senator Agha Shahzaib Durrani in chair, discussed the initiatives launched by the commerce ministry to promote local trade facilities, including the border markets in less developed areas.
Officials of the commerce ministry informed that the government has initiated border markets with Iran and Afghanistan. However, Afghanistan has rejected the proposal. Moreover, the physical structure of the border market with Iran is in place; however, it has not become operational due to excessive delays from the Iranian government and lack of road connectivity in the region. Importantly, the government has also notified a duty concession for the border markets. Senator Manzoor Ahmed Kakar stated that in a recent meeting of a trade delegation with Iranian officials, the Iranian officials highlighted that the border markets have been delayed due to delays on the part of the Pakistani government. The Committee, in order to identify the cause of the delay, recommended that the ministry should provide details of communications held with the Iranian government within seven days.
Furthermore, the committee deliberated on the policy guidelines concerning the certificate of origin for Iranian-origin goods and the way forward to streamline Pak-Iran trade issues. Officials of the commerce ministry informed that trade with Iran cannot be conducted through banking channels due to the existing US sanctions on Iran. However, the Balochistan High Court exempted the import/export form for trade with Iran in its stay, which was vacated in October of last year. Afterwards, the government introduced a 45-day waiver for Iranian-origin products, which has also expired. Senator Shahzaib Durrani questioned the fate of the goods ordered before the expiry of the waiver, for which payment has been made and which are currently lying at the port awaiting approval. The committee directed the State Bank of Pakistan and the commerce ministry to conduct a joint meeting on the issue so that the goods lying at the port could be cleared and individuals could be saved from losses.
