LCCI Calls for Collaborative Efforts to Enhance Trade between Pakistan and Afghanistan
Published on: April 28, 2024.
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Lahore Chamber of Commerce and Industry (LCCI) President Kashif Anwar has emphasized the need to enhance trade relations between Pakistan and Afghanistan. Speaking at a meeting with an Afghan trade delegation, Anwar highlighted that despite the longstanding socio-economic ties between the two countries, the current trade volume does not reflect their potential. He called for joint efforts to boost mutual trade.
Anwar stressed the importance of fostering good trade relations with neighboring countries, as neighbors should be given priority. He emphasized that exchanging trade delegations and understanding each other’s culture play a crucial role in increasing trade. Anwar also mentioned the rapid development of Pakistan’s information technology sector.
The bilateral trade volume between Pakistan and Afghanistan is currently $522 million, which leaves room for improvement, according to Anwar. He suggested that establishing banking channels between the two nations could lead to a manifold increase in trade. He highlighted the potential for expanding trade in areas such as pharmaceuticals, carpets, rice, and auto parts. Anwar also mentioned the recent issuance of an SRO (Statutory Regulatory Order) for the Barter System by the Ministry of Commerce, which is expected to boost mutual trade.
The head of the Afghan delegation, Khan Jan Alokozai, expressed his willingness to increase trade with Pakistan. He acknowledged the region’s potential for economic growth and emphasized the importance of transit trade for Afghan exports. Lahore plays a significant role in this regard, as it serves as a major hub for exporting pharmaceuticals, rice, auto parts, and other goods to Afghanistan. Alokozai also highlighted the need for stability in the region, emphasizing that connecting Pakistan and Afghanistan would lead to greater connectivity between South Asia and Central Asia.
Alokozai proposed that Afghanistan could facilitate Pakistan’s exports to Russia, while Pakistan could provide a route for delivering raw materials from Central Asia. He noted that Afghanistan has achieved economic stability following recent political changes and the establishment of peace. Afghanistan is actively promoting its private sector, but political instability between the two countries has negatively impacted bilateral trade. As a result, Pakistan’s market share has shifted to Iran, and the trade between Afghanistan and Iran has exceeded US $3 billion.
The Afghan delegation urged Pakistani investors to consider investing in Afghanistan, highlighting the favorable conditions for Pakistani individuals to work in the mining and other sectors with ownership rights. In contrast, investors from other countries are required to have an Afghan national with them.
Anwar expressed his support for a plan for reconciliation between the two countries. He mentioned that the Lahore Chamber has established an Alternate Dispute Resolution Center, which has been instrumental in resolving business disputes.
Overall, the meeting between the LCCI and the Afghan trade delegation emphasized the need to strengthen trade relations and explore the untapped potential between Pakistan and Afghanistan.
Source: [UrduPoint](https://www.urdupoint.com)
