The Pakistani authorities have announced several measures that aim to facilitate trade between Afghanistan and Pakistan. To support this aim, Pakistan has established a US$100 million fund and will further promote economic ties by reopening the Pakistan Embassy in Kabul and Jalalabad Consulate in Afghanistan during January.

Announcing the new measures earlier the month, Pakistan's minister for commerce, Abdul Razak Dawood, said there is no restriction on trade with Afghanistan in Pakistan rupee and there will be no duty draw back for trade in rupee, provided exporters register transactions with the authorities. He added that exporters are entitled to normal duty draw back for dollar trades with Afghanistan.

Export list expands

The minister said the list of exportable items for Afghanistan has been increased from 14 to 32 New items added to the list include among others electric fans, wires, cables, all cotton and woolen textile products, carpet yarn, all plastic products, construction material, all machinery, cartons and packaging paper, herbal and allopathic medicines, pesticides, poultry feeds, veterinary medicines, pulses, surgical instruments and stationery items. The list may well be further expanded in the future.

Dawood also said the government has waived the condition of opening a letter of credit and certification for the export of allowed items to Afghanistan as the "situation in that country was not normal". Instead, exporters can bring in cash payments in advance. Similarly, because Pakistan has no embassy or consular presence in Afghanistan, the condition of producing a certificate to prove goods have arrived in Afghanistan has also been suspended.

The authorities in Pakistan are considering other ways to boost trade with Afghanistan, including two proposals to create revolving funds for suppliers and to make warehousing available for products from Pakistan in Kabul and Jalalabad.

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