Sarhad chamber criticises abolishment of cash in counter facility

PESHAWAR: President, Sarhad Chamber of Commerce and Industry (SCCI), Sherbaz Bilour has expressed grave concern over abruptly abolishment of cash in counter facility, which aimed to facilitate trade between Pakistan and Afghanistan, onward to central Asian republic countries.

He lamented that the government had taken decision regarding doing trade with Afghanistan and CARs states in Pakistani rupees in haste and didn't take the chamber and trade bodies on board, which has caused affecting bilateral trade between two neighbouring countries and exports to regional states.

The issue was discussed during a meeting of traders, exporters and importers chaired by SCCI president Sherbaz Bilour here at the chamber house, according to a press release issued here on Sunday. Engineer Manzoor Elahi, senior vice president and Junaid Altaf, vice president of the chamber and others were also present during the meeting.

The meeting was informed that the federal government and State Bank of Pakistan had issued a circular No/ICM/116775/EPP(51)MISC-PER 2021, directing for immediately abolishing cash in counter facility from July 01, 2021, which has created unrest among traders, exporters and importers. The bilateral trade between Pakistan and Afghanistan that stood at $ 2.5billion a some five years, currently has declined to less than $ 600million, would be completely ended between the two neighbouring countries, if such unilateral policies and decisions would continue to impose, says Sherbaz Bilour. The SCCI chief alleged that the anti-state elements were trying to put Pakistan's economy at stake and termed that the decision to close the Cash in Counter facility was a part of their conspiracy.

He noted that generally Punjab and in particular Khyber Pakhtunkhwa has mostly dependent trade with Afghanistan and Central Asian Republic countries, but the government's unilateral policies and decisions have been affecting bilateral trade volume between the two neighbouring countries and regional trade as well. Bilour went on to say that the industrial and trade activities would be slowed down as a result of such policies, that could trigger unemployment and bring negative impacts on the national economy.

The SCCI chief urged the federal government and SBP to devise a joint mechanism in light of the traders and relevant stakeholders' proposals to boost trade with Afghanistan and enhance exports with regional states as well so that it will help to stabilize the country's economy and create ample employment opportunities.

He repeatedly mentioned that the abrupt SBP circular has created great unrest and disappointment among the traders as such policies and decisions were not in the best interests of the business community and the national economy, which should be reviewed and withdrawn immediately.

The chamber president, on the occasion, also made a demand for giving a three month extension regarding cash in counter to facilitate trade between the two neighbouring countries and enhance regional exports.

Copyright Business Recorder, 2021