ISLAMABAD: Pakistani authorities have stopped hundreds of Afghanistan-bound containers under transit trade at Karachi port to curb smuggling and ensure proper taxation, causing losses of millions of dollars to Afghan traders, local businessmen said on Saturday.
The development comes days after the country imposed a 10 percent processing fee on several items under the Afghan transit trade agreement in a step that was viewed as an attempt to stop illegal entry of goods into the country from the neighboring state.
The commerce ministry in Islamabad subsequently banned the export of 212 items to Afghanistan under the transit trade agreement that included confectioneries, chocolates, footwear, machinery, blankets, tires, home textiles and garments.
“Hundreds of Afghanistan-bound containers are stuck at Karachi port after the authorities refused to clear the items banned by the commerce ministry,” Qazi Zahid Hussain, former president of Pakistan-Afghanistan Joint Chamber of Commerce and Industry, told Arab News.
“It is obvious the Afghan traders will have to bear millions of dollars of losses due to the change in Pakistan’s policy,” he continued, though he lauded the move and said it would curb smuggling that was taking place under the transit trade arrangement.
“The authorities will now allow Afghan traders to reexport their goods from Pakistani ports instead of clearing them for Afghanistan,” he added.
The Afghanistan-Pakistan Transit Trade Agreement aims to facilitate the transit of goods exported from and imported to Afghanistan using the Pakistani ports in Karachi and Gwadar. The pact also envisages the use of Afghan territory for trade between Pakistan and the Central Asian countries.
Hussain said the volume of Afghan transit trade swelled to around $8 billion from $4.5 billion in recent months, adding this alerted the authorities that many of the items destined for Afghanistan were secretly flowing into the Pakistani market.
“This means the volume of smuggling had increased significantly putting pressure on our currency, closure of local industry, loss of jobs and weakening of the economy,” he explained, adding that recent measures of the government against the smuggling through the Afghan transit trade had resulted in appreciation of rupee against the US dollar and stabilization of the economy.
Hussain, however, said that Pakistan being signatory of the World Trade Organization (WTO) was bound to allow the transit trade through its sea and land routes to landlocked Afghanistan.
“Pakistan cannot unilaterally shut the Afghan transit trade but can regulate it to some extent to stop the smuggling and boost its tax revenue,” he continued.
Afghan officials have objected to these developments while pointing out it is putting the commercial activities between the two countries under undue pressure.
“In addition to imposing 10 percent processing fee on some transit goods, the government of Pakistan has asked Afghan traders for 100 percent bank guarantee on transit cargo, which is beyond the ability of the traders,” Afghan embassy in Islamabad said this week.
The embassy added that its officials had tried to resolve trade-related issues by taking them up with the Pakistani authorities, but they had only exacerbated.
It urged the government in Islamabad “to remove these obstacles in the Afghan transit sector, so as not to have a negative impact on the commercial and bilateral relations of the two countries.”
Jawaid Bilwani, a member of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry, said that Pakistan should revive the railway route to Afghanistan to boost its exports to the Central Asian states under the agreement.
“Our total export to the Central Asian countries at the moment is just $1 million per annum which can be significantly boosted through Afghanistan which is the shortest route to these nations,” he told Arab News.
“Pakistani authorities should work out viable plans to use the transit trade agreement in our favor,” he said, adding that Pakistan was earning millions of US dollars in taxation and fees for the utilization of its ports for transit trade.
Pakistan holds hundreds of Afghanistan-bound containers at Karachi port amid escalating trade row
https://arab.news/cxjev
Pakistan holds hundreds of Afghanistan-bound containers at Karachi port amid escalating trade row
- Afghan traders are likely to suffer financial losses due to the measures taken by the Pakistani authorities to curb smuggling
- Government imposed trade restrictions after transit trade items were sold into Pakistani markets, weakening the economy
Pakistan to export female beauticians to Saudi Arabia — state media
- Hairdressers, makeup and nail artists under the age of 40 are required, OEC says
- Pakistan has long maintained a strong labor export relationship with the Kingdom
ISLAMABAD: Pakistan’s Overseas Employment Corporation (OEC) will send skilled female beauticians to Saudi Arabia in response to a demand from a private firm in the Kingdom, state media reported on Friday, outlining the qualifications required for applicants.
The initiative comes as part of Pakistan’s long-standing labor export relationship with Saudi Arabia, which remains the top destination for Pakistani workers and contributes over $700 million in monthly remittances to the South Asian country.
Pakistan regularly sends skilled labor to Gulf nations, including medical professionals, engineers and technicians. The latest move targets the beauty and personal care sector.
“Overseas Employment Corporation, an attached department of the Ministry of Overseas Pakistanis and Human Resource Development, will export skilled workers (female beauticians) to the Kingdom of Saudi Arabia,” the Associated Press of Pakistan (APP) said.
It informed a Saudi firm is seeking beauticians for various roles, including senior hairdresser, nail technician (gel and acrylic), eyelash specialist, makeup artist, waxing and bleaching specialist and wig technician.
The required qualifications include a minimum of three years’ experience and an age limit of under 40 years.
APP said the firm will offer senior beauticians a monthly salary of 3,000 Saudi Riyals or approximately $800.
Employees will also receive free shared accommodation with furnishings and air conditioning, food allowance, and round-trip airfare, along with surface transport within Saudi Arabia if needed.
The news report said applications must be submitted via the OEC website by June 8.
Pakistan and Saudi Arabia enjoy robust economic, defense and cultural ties.
The Kingdom hosts over 2.7 million Pakistani expatriates and remains the largest source of remittances to Pakistan, a crucial lifeline for the country’s cash-strapped economy.
PM Sharif calls for economic policies to revive Pakistan’s export competitiveness
- The PM outlines the goal during a meeting with Dr. Stefan Dercon, a prominent British economist
- He calls for deep-rooted reforms to steer Pakistan’s economy back toward export-led growth
ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday stressed the need for balance across all economic policies to revive Pakistan’s export potential, saying his government wanted to take the country back to a place where its products were once again in global demand.
The remarks came during a meeting with Dr. Stefan Dercon, a prominent British economist and professor of economic policy at Oxford University.
Dercon, who previously served as the UK Department for International Development’s (DFID) chief economist, is widely recognized for his work on poverty, institutional reform and economic development in low- and middle-income countries.
“A sound balance across all policies is essential to promote business,” the prime minister was quoted as saying in an official statement circulated by his office. “For Pakistan’s economic development, alignment between fiscal policy, taxation policy and production policy is necessary.”
“In the past, Pakistani products were in high demand globally and the country was counted among the world’s major exporters,” he continued. “We want to bring Pakistan back to that place.”
Sharif’s meeting with the British economist took place at a time when Pakistan seeks to strengthen its economy through increased exports and foreign investment, following signs of stabilization under an IMF-supported economic program.
He maintained that deep-rooted reforms were required to transition the national economy back toward export-led growth.
Dercon praised the direction of Pakistan’s economic policy and reform agenda, noting improving investor sentiment toward the country.
He particularly lauded Pakistan’s tariff rationalization efforts, which aim to simplify and streamline import duties to support industrial competitiveness.
The meeting was also attended by top members of the government’s economic team, including Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal and senior officials from relevant departments.
IMF defends $1 billion disbursement to Pakistan amid India’s objections
- IMF communications director says the board approved funding as Pakistan had ‘met all of the targets’
- She clarifies EFF disbursements go to the central bank and are not used to fund the national budget
KARACHI: The International Monetary Fund (IMF) this week defended its decision to release a $1 billion tranche to Pakistan, despite India’s concern over its potential misuse, by pointing out the country had met all requisite targets under the Extended Fund Facility (EFF).
India had raised objections to the IMF’s disbursement amid a military confrontation with Pakistan, saying the funds could be diverted to support activities that it described as detrimental to regional stability. New Delhi abstained from the IMF Executive Board vote on May 9, highlighting apprehensions about the timing and potential implications of the financial assistance.
During a news briefing in Washington on Thursday, IMF Communications Director Julie Kozack addressed these concerns, saying the international lender provided financing to member states for the purpose of resolving balance of payments problems.
“In the case of Pakistan … the EFF disbursements … are allocated to the reserves of the central bank,” she said. “Under the program, those resources are not part of budget financing … [and] are not transferred to the government to support the budget.”
The IMF official further emphasized the Fund’s decision was based on Pakistan meeting all the targets set under the loan program.
“Our Board found that Pakistan had indeed met all of the targets,” she continued. “It had made progress on some of the reforms, and for that reason, the Board went ahead and approved the program.”
Kozack also outlined the safeguards to prevent any potential misuse of funds, including targets on the accumulation of international reserves and a zero target for central bank lending to the government.
She also noted the program includes substantial structural conditionality aimed at improving fiscal management.
The IMF’s disbursement this month was part of a broader $7 billion support program aimed at stabilizing Pakistan’s economy. The Fund has said future disbursements will depend on Pakistan’s continued adherence to the program’s conditions and reforms.
PM Sharif tells business leaders private sector key to economy ahead of June 10 budget
- The prime minister assures chambers of commerce representatives of his administration’s full support
- He promises to reduce cost of doing business in the country, highlights zero tolerance for tax evasion
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday emphasized the pivotal role of the private sector in driving economic development, asserting that a robust public-private partnership was essential for the country’s emergence as a strong global economy.
Sharif made these remarks during a meeting with presidents of chambers of commerce from across the nation, coinciding with the government’s announcement to present the next federal budget on June 10.
The government has consistently stressed the need for the private sector to lead in strengthening the national economy, assuring it of state support.
Sharif reiterated this stance, highlighting the necessity of collaboration between the government and private enterprises in the country.
“There is a need to mobilize the private sector to achieve economic self-reliance,” the Prime Minister’s Office quoted him as saying during the meeting.
“Protecting the rights of the Pakistani business community and providing them with a conducive environment for profitable business are among the top priorities of the government,” he continued.
Sharif also pledged to reduce the cost of doing business in Pakistan, noting that measures were being implemented to facilitate access to loans and reduce electricity prices.
Addressing tax compliance, he emphasized a zero-tolerance policy toward tax evasion. Pakistan has historically one of the lowest tax-to-GDP ratios in the region.
The government has tried to addressed the situation by reforming its tax collection body through increased automation to improve collection and compliance.
The official statement said the delegation of business leaders commended the government’s economic policies, citing gradual improvements in the national economy and business environment.
They also presented budget proposals for the upcoming fiscal year.
Pakistan is scheduled to release a comprehensive economic survey for the outgoing fiscal year on June 9, only a day ahead of the budget preparation.
Pakistan says 25,698 pilgrims to perform Hajj under private quota in 2025
- The annual pilgrimage is expected to take place between June 4 and June 9 this year
- Around 55,642 Pakistani Hajj pilgrims have landed in Saudi Arabia so far via 244 flights
ISLAMABAD: Pakistan’s religious affairs minister, Sardar Muhammad Yousaf, said on Friday only 25,698 pilgrims would be able to perform Hajj this year under the private scheme, after thousands of allocated slots were revoked due to non-compliance by private operators with Saudi booking rules and deadlines.
The kingdom had granted Pakistan a total quota of 179,210 pilgrims for Hajj 2025. Typically, this national quota is evenly split between the government-run and private schemes. However, the private sector failed to meet procedural requirements set by Saudi authorities, leading to a significant cut in their share, down from 89,801 to just over 25,000, leaving more than 67,000 would-be pilgrims affected.
“25,698 people will be able to go for Hajj under the private quota,” Yousaf said while addressing a press conference.
“Up until February 14, only 3,600 pilgrims had submitted their payments, but after a one-week extension, 10,000 more applications were received, bringing the total number to 13,000.”
He highlighted that private Hajj operators had registered 904 companies with the Saudi authorities, based on a list provided by the religious affairs ministry. However, some people ignored this and made payments to unregistered Hajj operators.
Yousaf assured that a committee formed by Prime Minister Shehbaz Sharif would investigate the issue.
He said Pakistan International Airlines, Saudi Airlines, Air Sial, Airblue, and Serene Air would be transporting Pakistani pilgrims for Hajj.
Earlier in May, a ministry spokesperson issued guidelines for Hajj pilgrims, including verifying the authenticity and quota approval of private tour operators before making payments, visiting the ministry’s official website to confirm registration and avoiding reliance on unverified advertisements or information.
The ministry strongly urged all prospective pilgrims to exercise utmost caution when booking Hajj packages through private tour operators.
Some registered private organizations also failed to pay dues within the timeline set by Saudi authorities, prompting Sharif to intervene and request an extension of the deadline, which was approved.
This year’s annual pilgrimage is expected between June 4 and June 9, with nearly 89,000 Pakistanis traveling to Saudi Arabia under the government scheme.
Pakistan launched its Hajj flight operation on April 29.
Around 55,642 Pakistani Hajj pilgrims have landed in Saudi Arabia so far via 244 flights.
