The Impact of Afghan Transit Trade Suspension on Pakistan
Recently, the Federal Board of Revenue (FBR) suspended all Afghan Transit Trade from Karachi ports due to rising tensions at the Pak-Afghan border. If you’re in the know, this means that gate passes for Afghan consignments have been canceled, and all cargo clearance has ground to a halt at both Karachi Port and Port Qasim.
This hefty move came during a meeting, chaired by the Director General at the Custom House, Karachi, focusing on security issues exacerbated by recent unrest. The result? A massive cargo buildup has occurred, with containers stuck at ports and border stations, leading to the alarming figure of around 291 containers in limbo at Karachi alone!
The implications are staggering. Junaid Makda, President of the Pak-Afghan Joint Chamber of Commerce, reported that this suspension is causing daily losses of about one billion rupees. That’s a huge blow for traders on both sides, with prices for food items plummeting as traders scramble to sell their perishable goods. Many are even selling food at half price!
With ports reaching full capacity, the situation has intensified, halting a flow of goods that typically sees around 1,000 containers moving daily. The stockpile includes crucial items like electronics, machinery, and even chocolates. The longer this goes on, the greater the financial strain—not just for traders, but for consumers as well.
To tackle the congestion crisis, authorities are stepping up by implementing technology-driven measures. New protocols state that no bonded vehicle can enter a port unless equipped with a Prime-over Device (PMD) from a licensed tracking company. This ensures that all vehicles are tracked efficiently, allowing for a smoother, faster operation.
These recent directives aim to manage the growing logistical challenges while addressing security concerns. As the country navigates through these trying times, staying updated with such developments is essential for traders and businesses.
If you’re looking to foster better connections in the trading community or explore strategies to adapt to these changes, consider checking out Pro21st. They can provide valuable insights and resources to help you handle such challenges effectively.
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