Strict regulations affecting exports to Turkmenistan: PBC

The Pakistan Business Council (PBC), a business policy platform comprising companies has observed that Pakistani exports to Turkmenistan are affected with difficulties in getting visa, high custom duties and strict regulation. According to PBS's analysis, Pakistan's trade with Turkmenistan has entirely been in favour of Turkmenistan over the past ten years. In 2016, imports were $4 million and exports stood at $24.96 million resulting in a trade surplus of $20.96 million. Cotton is the largest export to Pakistan and vegetable or animal fats and oils are the most imported commodities from Pakistan.
Turkmenistan has the potential to increase its exports of cotton, urea and polypropylene to Pakistan. On the other hand, Pakistan can enhance its supply of wheat and medicament to Turkmenistan. In 2016, Turkmenistan's trade potential with Pakistan for top ten products amounted to $186.68 million for imports and $233.32 million for exports. Trade between the two countries, however, remains low because of the land route which passes through Pakistan. Additionally, Pakistani exports to Turkmenistan are affected by factors such as difficulties in obtaining visa, strict regulations to goods entering Turkmenistan, high custom duties and language.
Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline is a joint initiative of four countries. The 1,800 km pipeline is being funded by the Asian Development Bank (ADB) at an estimated cost of $10 billion. Moreover, the Islamic Development Bank (IDB) has also agreed to provide financial assistance. The purpose of this venture is for Turkmenistan to reduce its export reliance on China and to provide Afghanistan, Pakistan and India with an adequate supply of gas. It was agreed that Turkmenistan will lead the project and contribute 85 percent of the equity, while Afghanistan, India and Pakistan will each contribute 5 percent.
Once the project is completed, Turkmenistan will provide 33 billion cubic meters gas per annum from the Galkynysh field, of which Pakistan and India will each receive 14 billion cubic meter gas per annum while Afghanistan will be provided 5 billion cubic meter of gas per annum. The pipeline is expected to be completed in December 2020.