Afghans see Pakistan trade route as most viable despite festering tensions

Stranded trucks are pictured near the Pakistan-Afghanistan border in Torkham on January 16, 2024. (AFP/File)
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Updated 27 March 2024
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Afghans see Pakistan trade route as most viable despite festering tensions

  • Afghanistan-Pakistan bilateral trade amounted to $1.8 billion in 2022-23
  • Afghanistan has set sights on Iran’s Chabahar as alternative to Pakistani ports

Kabul/Peshawar: Afghans say access to international markets through Pakistan is still the most viable option for their landlocked country, as bilateral trade talks took place in Kabul this week to resolve obstructions amid heightened border tensions.

The neighboring countries have traded blame in recent months over who is responsible for a recent spate of militant attacks in Pakistan. Islamabad says the attacks are launched mostly from safe havens in Afghanistan.

Kabul’s ruling Taliban deny this and blame Islamabad for not being able to handle its own security challenges.

Tensions have also worsened as Islamabad began expelling more than a million undocumented foreigners, mostly Afghans, from Nov. 1 last year, amid the row over accusations that Kabul harbored Pakistani militants.

The situation has also led to economic losses, as key border crossings for trade and travel have been intermittently closed.

Pakistan’s delegation led by Commerce Secretary Khurram Agha arrived in Kabul on Monday for negotiations with the Taliban administration.

“God willing, the talks will lead to better results to encourage bilateral trade and businesses,” Akhundzada Abdul Salam Jawad, an Afghan commerce ministry spokesperson, told Arab News on Wednesday, adding that concrete details would come out after the conclusion of the talks.




Pakistan’s delegation led by Commerce Secretary Khurram Agha (right) is pictured holding talks with Afghan government (left) is Kabul, Afghanistan, on March 26, 2024. (@MoICAfghanistan/X)

The government of the landlocked country has repeatedly accused Pakistan of using access to its ports as a political leverage, curtailing efforts to revive the economy that has been reeling under international sanctions since mid-2021, when the Taliban took power.

Ziaulhaq Amarkhil, former governor of the Nangarhar province, which is linked with Pakistan’s Khyber Pakhtunkhwa province via the Torkham crossing, said that trade route was the most feasible one for Afghans in terms of time and costs.

“But unfortunately, the route has been politicized in recent years,” he told Arab News.

“Every time Afghan traders transfer more goods, they are blocked in Karachi port ... This has caused Afghan traders tremendous loss in the form of demurrage and their goods got rotten and wasted because of the delay.”

The ongoing negotiations are taking place also as Afghanistan has set sights on the Iranian port of Chabahar as an alternative to Pakistani ones.

The Taliban announced in late February a $35 million investment in Chabahar, which besides Pakistan’s Gwadar, Qasim and Karachi is the closest access point to the Indian Ocean for Afghanistan.

Amarkhil believes the Iranian port is the only way out of the deadlock with Islamabad.

“For a permanent solution, Afghanistan should expand the investment already done in Chabahar to connect the country with international markets even though it may require more time and investment,” he said.

But that solution was not likely to be available in the near future. Amin Stanekzai, economist and lecturer at the Rokhan Institute of Higher Education in Nangarhar, said the Iranian port could not be an alternative.

“Chabahar can be used to reduce pressure, but its potential as a complete replacement is currently limited,” he told Arab News.

“Afghanistan is heavily reliant on South Asian countries for imports, and in terms of cost and time, Qasim, Gawadar and Karachi ports are more viable options for Afghan traders.

Chabahar, on the other hand, can be used as a substitute to reduce the pressure, but it is currently less effective as a complete replacement.”

“PRACTICAL RESULTS”

Despite political tensions, bilateral trade ties remained vital for both the Afghan and the Pakistani economy.

Trade between the two countries amounted to $1.8 billion in 2022-23, according to Pakistan-Afghanistan Joint Chamber of Commerce data.




An Afghan security personnel stands guard as a truck arrives from Pakistan near the zero point Torkham border crossing between Afghanistan and Pakistan, in Nangarhar province on January 23, 2024. (AFP/File)

“Even though trade and political relations between Afghanistan and Pakistan have seen a lot of ups and downs in the last few decades, the level of trade and transit between the two countries is still on a high graph and this means that both countries can benefit from improving trade and transit relations,” Stanekzai said.

“Trade between Afghanistan and Pakistan is important because these two countries have historically been important trade and transit partners. If we look historically and socially, we know how close and dependent the economies of these two countries are.”

While there was bitterness among Afghan traders, there was hope on the ground for improvements.

Hajji Rohullah, an Afghan fruit and vegetable exporter, said the Pakistan route was “the most convenient way of doing exports and imports,” but it was difficult as the neighbor’s political situation was frequently changing and affecting trade.

“When the peak fruit or vegetable season arrives in Afghanistan, Pakistan makes sure to find a reason to close the border crossing.

Last year, hundreds of tons of vegetables got rotten in Torkham and Jalalabad because the door was closed without any prior notice,” he told Arab News.

“We need practical results ... We hope that the Islamic Emirate (of Afghanistan) can bring some improvements in the relations with Pakistan to support businesses and facilitate trade and transit.”


IMF team to arrive in Pakistan in coming week for talks on ‘next phase of engagement’

Updated 9 sec ago
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IMF team to arrive in Pakistan in coming week for talks on ‘next phase of engagement’

  • Esther Perez Ruiz says IMF encourages better governance, wants to help with inclusive economic growth
  • She says IMF mission team will be led by Nathan Porter and hold meetings with the Pakistani authorities

KARACHI: The top International Monetary Fund (IMF) official in Pakistan confirmed on Saturday the global lending agency will send a delegation to Islamabad next week to discuss the “next phase of engagement” with the government that has publicly expressed its interest in securing a larger and longer-term loan.
Last month, the country’s finance minister, Muhammad Aurangzeb, told a media briefing Pakistan was hoping to reach a staff-level agreement with the IMF for a new loan “by June or early July.”
His statement came at a time when the country’s short-term IMF loan program of $3 billion was about to expire after its successful completion.
However, he did not elaborate much on the government’s preference for the size and duration of the next loan facility, saying these issues would be discussed during negotiations with the IMF team.
“A mission team led by Nathan Porter, IMF’s Mission Chief to Pakistan, will meet with authorities next week to discuss the next phase of engagement,” Esther Perez Ruiz, IMF Resident Representative for Pakistan, told Arab News in response to a query.
“The aim is to lay the foundation for better governance and stronger, more inclusive, and resilient economic growth that will benefit all Pakistanis,” she added.
Some Pakistani media outlets recently reported that an IMF team was already visiting the country to discuss the bailout program under the Extended Fund Facility.
However, the IMF statement clarifies its mission is yet to arrive in Islamabad for negotiations.


PM Sharif seeks UK investment as Pakistan bolsters economic diplomacy amid financial recovery

Updated 48 min 30 sec ago
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PM Sharif seeks UK investment as Pakistan bolsters economic diplomacy amid financial recovery

  • The PM highlights governance and institutional reforms by his administration in a meeting with the top British diplomat
  • Pakistan has been actively urging countries worldwide to explore opportunities in mining, tourism and agriculture sectors

ISLAMABAD: Prime Minister Shehbaz Sharif expressed a keen interest in attracting investment from the United Kingdom during a meeting with British High Commissioner Jane Marriott on Saturday, as his administration continued active economic diplomacy by encouraging countries worldwide to explore opportunities in mining, tourism, information technology and agriculture sectors.
Faced with daunting financial challenges, Pakistan sought the International Monetary Fund (IMF) assistance and encouraged businesses and entrepreneurs from friendly nations to invest in the local market to reap benefits and help with the country’s economic recovery.
So far, the government’s focus has mainly remained on the Gulf states since the establishment of the Special Investment Facilitation Council (SIFC), a civil-military hybrid body, established last year to oversee foreign financing.
However, Federal Finance Minister Muhammad Aurangzeb announced earlier this week investors from the United States and European countries were also taking interest in putting their money in Pakistan amid its gradually recovering economy.
“Pakistan and the United Kingdom enjoy long-standing relations that are further strengthening with the passage of time,” the prime minister was quoted as saying by the state-owned Associated Press of Pakistan (APP) news service.
The APP also reported that Sharif highlighted his administration’s efforts to improve governance structures and introducing institutional reforms.
“He said that the government was taking measures at the micro and macroeconomic levels to recover the country’s economy,” the report said. “Moreover, he said the digitization process of the Federal Board of Revenue (FBR) was in the final stage.”


Pakistan serves notices to 12 cosmetic companies for ‘greenwashing,’ misleading marketing

Updated 11 May 2024
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Pakistan serves notices to 12 cosmetic companies for ‘greenwashing,’ misleading marketing

  • Competition Commission of Pakistan says these firms falsely claimed their products to be organic, chemical-free
  • It asks customers to remain vigilant and report misleading advertising claims, health hazards caused by them

KARACHI: The Competition Commission of Pakistan (CCP) announced on Saturday it had served notices to 12 cosmetics companies for running “deceptive marketing campaigns” by engaging in “greenwashing,” falsely describing their products as organic and devoid of any chemicals.
The CCP is a regulatory agency with a fundamental mandate to ensure a level playing field for all market players and to protect consumers from anti-competitive practices, predatory behavior and price-fixing.
The CCP statement also highlighted that Section 10 of the Competition Act, 2010, prohibits misleading marketing practices and emphasizes “accuracy, integrity, reliability and truthfulness” in marketing communication to assist consumers in making informed purchase decisions.
“The Competition Commission of Pakistan has taken cognizance of deceptive marketing by the beauty products’ manufacturers and issued notices to 12 companies regarding their false and misleading claims,” the CCP said.
“CCP’s preliminary probe revealed that these Undertakings were prima facie engaged in ‘greenwashing’, advertising their products as ‘Natural, Organic, Sustainable, Pure, and Chemical Free’ without having any scientific evidence to support their claims,” it added. “Such unsubstantiated marketing claims not only mislead the consumers but also pose potential health risks.”
It added the notices issued by its officials could ultimately lead to responsible marketing practices prioritizing environmental integrity and consumer trust.
The statement also urged consumers to remain vigilant and report false advertising claims along with any health hazards caused as their consequence.


Japan defeat Pakistan in dramatic shootout to win 2024 Azlan Shah Hockey Cup final

Updated 11 May 2024
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Japan defeat Pakistan in dramatic shootout to win 2024 Azlan Shah Hockey Cup final

  • Japan seized an early lead with a field goal in the 12th minute, igniting a fierce contest that ended in a 2-2 draw
  • The electrifying shootout phase led to Japan’s convincing 4-1 victory, helping the team clinch the Azlan Shah cup

ISLAMABAD: In a dramatic conclusion to the 2024 Azlan Shah Hockey Cup on Saturday, Japan defeated Pakistan in a penalty shootout after a tense 2-2 draw, dashing the Pakistan team’s hopes that had reached the tournament final for the first time since 2011 following a series of stellar performances.
Six teams participated in the event, including the tournament Malaysia, Pakistan, South Korea, Japan, New Zealand and Canada. Pakistan won the Azlan Shah Cup title three times in the past and was the second runners-up in the last edition which was also held in Malaysia two years ago.
Prior to facing Japan the second time in the tournament, Pakistan played against New Zealand on Friday in a match that ended in a tie.
“Today is the day we’ve all been waiting for,” the Pakistan Hockey Federation exclaimed in a social media post prior to the match. “The FINAL showdown of the Sultan Azlan Shah Cup is here, and our beloved Green Shirts are ready to take on Japan ... Let’s rally behind our team with all our support and cheers as they aim for glory on the field!”

In a riveting showdown, Japan seized an early lead with a field goal in the 12th minute, igniting a fierce contest that saw both teams neck and neck until the final whistle.
As regular time expired with the score deadlocked, the match escalated into an electrifying shootout phase.
When the dust settled, however, Japan had triumphed with a convincing 4-1 victory, clinching the cup and retaining their top position on the leaderboard where they already stood tall with 13 points right ahead of the final.
Pakistan, despite a valiant effort, were on the second place with two draws.

 


Pakistan drafts new social media regulatory law amid free speech concerns from digital activists

Updated 11 May 2024
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Pakistan drafts new social media regulatory law amid free speech concerns from digital activists

  • The government says it wants the legislation to curb disinformation, hate speech on social media platforms
  • Rights activists fear the authorities may curb online dissent instead of encouraging responsible Internet use

ISLAMABAD: Pakistan is working on a draft law to regulate social media to “protect digital rights” of millions of users, encourage responsible Internet use and regulate online content to prevent hate speech and disinformation, confirmed a senator belonging to the ruling Pakistan Muslim League-Nawaz (PML-N) party on Saturday.
The authorities have long struggled to regulate the social media content through different legislations, prompting critics to accuse it of trying to quell dissent. The popular social media platform X remains blocked in the country after widespread allegations of election manipulation in the wake of the February 8 national polls.
Earlier this month, the government notified a National Cybercrimes Investigation Agency to probe electronic crimes and is now working on another draft law related to the social media content, making digital rights activists describe it as yet another official attempt to stifle criticism online.
“The government is currently working on a draft law to regulate the social media content as we want to curb disinformation and hate speech being spread through these platforms,” Senator Afnan Ullah Khan told Arab News.
“A committee led by the federal law minister is discussing the draft law as we have to ensure people’s right to freedom of speech and freedom of expression as well,” he continued, ruling out concerns the government wanted to muffle its rivals and critics.
Khan said the draft law would be tabled in parliament within four weeks for discussion and debate.
“The opposition parties or any parliamentarian can object to any clause of the bill once it is presented in parliament for vote,” he said.
“We want to protect digital rights of our users instead of imposing any restrictions, but at the same time we want those to be prosecuted who violate the law by inciting hate speech and pedaling disinformation, or any content against the national security,” he added.
The draft law may propose establishment of a digital rights protection authority to ensure effective enforcement of laws, Khan informed, but “all this will be disclosed to the media and public once the bill is tabled in parliament for discussion.”
Digital rights activists said successive governments in Pakistan had drafted new laws or amended old ones to curb the dissenting voices on social media platforms and file criminal charges against journalists and activists to restrict freedom of speech and expression.
“The government should involve all stakeholders, including civil society and rights activists, while drafting the new law to prevent its misuse,” Sabookh Syed, President of Digital Media Alliance of Pakistan, told Arab News.
“The government may strengthen defamation laws to prevent social media misuse instead of making it a criminal offense that could lead to persecution of activists and violate constitutional guarantees related to free speech,” he added.