Federal Finance Minister Shaukat Aziz said here on Saturday that Pakistan, Iran and Afghanistan have agreed to combat the menace of smuggling taking place across their common borders.
Addressing a meeting of the members of Sarhad Chamber of Commerce and Industry here, Shaukat said that finance ministers of the three countries sat together and deliberated upon the issue of smuggling, which is adversely affecting the economies of these states.
Decisions for numerous steps were taken in that meeting to offset the impact of smuggling, he added.
He said that Iranian government has decided, in principle, to ban use of right-hand-drive vehicles in Iran. The scope of co-operation among these three countries is increasing to settle the matter of smuggling on sound footings. "We are also looking into the items being sneaked into these countries through illegal means," he added.
The Afghan Government, he said, has also levied some kinds of duties to regulate the exports and imports of the country. Still a lot of work has to be done in this regard, he added.
About increasing trade with Afghanistan, he referred to numerous measures of the government and said that Pakistan government has laid a comprehensive network of banking infrastructure in Afghanistan to facilitate the importers and exporters.
NBP has opened its branch in Kabul, with Herat and Kandahar to follow shortly. Habib Bank has also been allowed to open its branch in Kabul, he added.
Shaukat said that promotion of unhindered trade with Afghanistan would convert the locational disadvantage of NWFP being far away from the sea port into advantages.
The present government is working in this direction from Day One and has established close liaison with the Afghan authorities to ensure free and smooth flow of trade between the two states.
The Finance Minister hinted at increasing the volume of trade and export with Afghanistan from the present 600 million dollars to one billion dollars during the current fiscal year.
Afghanistan, he said, is the only country with whom Pakistan meets thrice a year to discuss economy and trade relations through the Joint Economic Ministerial Commission.
He said that he would also meet the Afghan financial managers in the coming Berlin Conference to be held to discuss the rebuilding of Afghanistan.
To promote trade links with Afghanistan, he said that the government has recently accorded approval to the construction of Torkhum-Jalalabad road which would be later extended up to Kabul.
He held in high esteem the initiatives taken by the Sarhad Chamber in holding 'Rebuilding Afghan Trade Fair' in Peshawar and Kabul. He urged them to hold further similar exhibitions in other cities of Afghanistan like Herat, Mazar-e-Sharif and Kandahar where a lot of economic activity is taking place.
"Strong and stable Afghanistan is important to Pakistan and economically strong Afghanistan is in the best interests of our country," he told the members of SCCI.
The reconstruction process has just started in Afghanistan, for which Pakistan has pledged to contribute 100 million dollars, he added.
The Afghan government, he said, has assured him to address security concerns of the traders and exporters. "Now we have to take forward this process and capture the Afghan markets."
He said he paid a number of visits to Kabul in the recent past and witnessed Pakistan's products in their markets. He said, "We have to give up the impression that other countries are capturing the Afghan markets," and added that "if there is any lethargy in this regard, it would be our own folly".
He said that construction and improvement of road network with Afghanistan would give a big boost to trade potential of this part of the country.
The Federal Government is seriously endeavouring to revive the role of Peshawar as a hub of trade activities between Pakistan and Afghanistan.
The Government with the assistance of Asian Development Bank would lay a strong network of roads from Gwadar to Chaman and Torkhum-Jalalbad-Kabul so that there is no constraint on trade activities between the two countries.
Peshawar, he said, is the centre of gems and jewellery and it is up to the exporters to come forward to capture the regional markets. Gems & Gemological Institute (GGI) is actively functioning in Peshawar, he added. He impressed upon the exporters and importers not to look to the government. "You people have to do it," he stressed.
Referring to overall economic situation of the country, Shaukat said that the government is moving in the right direction to achieve the desired economic goals.
He was optimistic to achieve 5.3 percent growth target fixed for the current financial year. The government plans to obtain 6 percent growth rate during next fiscal year which is possible, he added.
Agriculture sector which contributes 26 percent to the national economy has registered four percent growth, he said, and added that cotton crop position this year would be the same as of last year's 9.4 million bales. Industrial sector's first six months targets indicated an all-time high record of 14.5 percent in the large-scale manufacturing whereas import of machinery increased by 30 percent.
The Minister said that the government is concentrating on deregulation of economic sector so that it should have minimum role in it and it is the private sector which should come forward and play its due role in the promotion of national economy.
He said that there is no pressure on national economy as foreign exchange reserves have reached record 12 billion dollars which is sufficient to cater for one year's import needs of the country.
"We are in a safe position to minimise foreign debts burden as we have sufficient cash in hand," he said and added that launching of the Eurobonds was aimed at reducing cost of debt servicing. The savings would be utilised on development of social sectors.
On the demand of deregulation of power sector, Shaukat said that the government intends to deregulate the whole process of distribution and generation. However, he said, it would take time.
He also invited budget proposals from SCCI for the coming federal budget. However, he said, these should not be more than 10 to 15. He said that the proposals of the Chamber would be discussed before finalisation of the budget.
He agreed to examine the issue of establishing stock exchange in Peshawar.
The minister said that Afghan Government has agreed to set up a tax-free zone in Jalalabad to facilitate the traders and exporters.
He said that the government does not want to create unnecessary hurdles in business activities and the traders should pay genuine taxes.
The Minister said that PIA has agreed to introduce Islamabad-Peshawar-Kabul flight.
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