A couple of weeks ago, he said that regular trade with Afghanistan is beneficial to Pakistan but he is not satisfied with the transit trade. He said transit trade is hurting Pakistan particularly in items such as pencils, tyres, blades etc. The Commerce Division has worked on APTTA in the light of agreements signed by other landlocked countries such as Nepal, adding that the issue of Afghan transit trade with India through land route also came under discussion during the recent visit of Afghan President, Ashraf Ghani but added that he (Dawood) clearly informed him that trade between Afghanistan and Pakistan is a bilateral not a trilateral issue, and requesting Afghanistan not to raise it.
The sources said, Afghanistan which earlier refused to talk on bilateral trade until Pakistan allows India to export its goods to Afghanistan through land route, has shown a willingness to discuss PTA, which will lead to FTA. Pakistan will also propose that Afghanistan's tariffs should not be higher than whatever tariff is being charged in Pakistan. Pakistan's domestic industry has already briefed the government on the negative impact of APTTA.
According to sources, Afghanistan has also agreed to renegotiate APPTA, which had lapsed a few years go. Pakistan, sources said, would also urge Afghanistan to take measures to stop imports which ultimately land back in Pakistani markets and hurt domestic industry. Abdul Razak Dawood argues that APTTA is anti-domestic industry, saying it is damaging Pakistan's domestic industry.
Former Commerce Minister, Engineer Khurram Dastgir had sent the draft revised APTTA to Afghanistan a couple of years ago with the Afghan response still awaited. Pakistan has imposed five conditions on transit goods coming from Afghanistan including installation of trackers, scanners and electric data exchange though these conditions are not applicable on goods like auto sector, tea and cigarettes coming from Iran.
Razak Dawood has proposed quantitative restrictions on Afghanistan's goods and tariff rationalization. Pakistan will also propose that Afghani importers should deposit their due duties and taxes in Pakistan and be reimbursed after the consignment crosses Pakistan.
