PVMA says continued closure of Pak-Afghan border a threat to businesses

Pakistan Vanaspati Manufacturers Association (PVMA) on Wednesday said continued closure of Pak-Afghan border has become a threat to businesses on both sides of the divide.

On April 28, 2020, the federal cabinet imposed a ban on export of edible commodities for two weeks due to massive increase in their prices in Ramazan.

The closure of the border due to the coronavirus is bankrupting businesses, creating a shortage of industrial raw material and contributing to food insecurity, said Atif Ikram Sheikh, Chairman PVMA.

He said that Pak-Afghan border was closed two months ago but later Afghan transit trade cargo was allowed to cross the international border but the local shipments were not allowed to cross into Afghanistan.

Atif Ikram Sheikh who has also served as Vice President FPCCI said that exports have been projected to fall by $4 billion in the current fiscal while continued closure of the border for local exports will add to the deficit therefore exports and imports should be allowed.

He informed that ghee exports to Afghanistan stands over one billion rupees per month which has dropped to zero.

Pakistani exporters have received foreign exchange from Afghan importers and fulfilled their commitments but they are unable to deliver the ghee which is resulting in problems. Afghans are demanding their money back and threatening legal action in international courts which has added to the problems of the business community, he informed.

He said that massive unsold stocks are piled up in warehouses which have brought this sector under intense pressure.

The business leader said that India and some other countries are trying to capture Pakistan's share in the Afghan market which can result in a permanent loss.

Iran-Afghan border has not been closed for a single day since the pandemic but Pak-Afghan border is kept closed for local businessmen which is amazing, he said, adding that the plight of people involved in exports of fruit, vegetable, rice, medicine, poultry products, livestock, construction material etc. should also be noticed by the policymakers.