Published On: Fri, Jan 10th, 2014
Published in Category: Business

Exports to Afghanistan in Pakistani Rupee to be discontinued by March 17, 2014

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ISLAMABAD: The government has decided in principle that payments against exports to Afghanistan would no longer be in Pak Rupees and the normal trading regime would apply with effect from March 17, 2014.

It was decided in a meeting chaired by the Federal Minister for Finance Senator Mohammad Ishaq Dar to review Pakistan’s trade with Afghanistan at the Finance Ministry this morning.

The meeting was attended by Secretary Finance Dr. Waqar Masood, Secretary Commerce, Qasim Muhammad Niaz, Chairman FBR Tariq Bajwa, Advisor to Finance, Rana Asad Amin, Governor State Bank of Pakistan Yaseen Anwar and President Khyber Pakhtunkhwa Chamber of Commerce Zahid Ullah Shinwari.

It would be pertinent to mention here that the decision has been taken in view of the fact that normal banking channels were now available for transactions between the two countries. After consultations and due recommendations by the concerned Ministries a two month period was however being given to allow exporters serving any existing contracts he added. The meeting was informed that Pakistan’s export to Afghanistan during 2012-13 amounted to US 2.3 billion. This also included trade undertaken in Pak Rupee estimated at 50% of the total exports.

The President KCCI drew the attention of the Finance Minister to the difficulties being faced by exporters to utilize the route of Ghulam Khan as it was restricted for exports of Cement only. He suggested that other items should also be allowed to be exported .

The Chairman FBR and the Ministry of Commerce supported the contention of President KCCI

The Finance Minister, therefore, decided to allow export of all other items also from Ghulam khan which would help develop business in the backward areas of KPK and also stimulate growth of exports to Afghanistan.

These decisions would be implemented by the concerned Ministries who shall issue necessary amendments and streamline procedures.

The decision is likely to earn foreign exchange of US $ one billion, increase exports to Afghanistan, benefit business community as well as the people of Khyber Pakhtunkhwa and reflect actual export figures of the country.

In a separate meeting held with the representatives of State Bank of Pakistan, the Finance Minister reviewed the limit of currency notes allowed to Pakistanis travelling abroad.

The Governor State Bank of Pakistan raised the issue that the present limit of US$ 10000 for each person per trip was being misused and to check this tendency it was decided that the present limit of US $ 10,000 per trip per passenger be reduced to US $ 5000. Each child up to 12years would be entitled to 50% allowance while an infant would be permitted an allowance of 25%. The Finance Minister emphasized that the limit of US $ 5000 or equivalent per person per trip was applicable to passengers who were carrying currency notes.