PESHAWAR: Pakistan announced on Tuesday to impose a 10 percent processing fee on several items imported from Afghanistan under a transit trade agreement in a step that has been viewed as an attempt to stop illegal entry of goods into the country from the neighboring state.
The government launched an intense crackdown against smugglers and black marketers last month to bolster the country’s weakening economy and bring down the prices of essential items in the market.
The counter smuggling operation prevented the flight of foreign currencies from Pakistan, leading to the stabilization of its value somewhat subsiding the inflationary pressure in the economy.
“In exercise of the powers conferred by section 18D of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to impose processing fee at the rate of 10 percent ad valorem on the following Afghan transit Commercial goods imported into Afghanistan in transit via Pakistan,” said a customs department notification while listing down the items.
These included confectionaries and chocolates, footwear, mechanical and electrical machinery, blankets and home textiles, and garments.
Pakistan’s Dawn newspaper reported customs officials “suspect that certain goods, though destined for Afghanistan, are clandestinely rerouted back into Pakistan, prompting this latest measure.”
However, the official notification said goods declarations filed prior to the decision on Tuesday would be exempt from the processing fee.
Pakistan has also announced to crack down on illegal immigrants, mostly Afghans, residing in the country, asking them to leave before the end of the month.

ISLAMABAD: Pakistan’s cotton producers have made a remarkable comeback after suffering massive losses due to last year’s monsoon floods, with the commerce ministry announcing a 71 percent year-on-year growth in the ongoing year by issuing a brief statement on Tuesday.
Cotton is the main raw material of Pakistan’s textile sector which contributes about 60 percent to the overall exports of the country.
Torrential rains during monsoon last year triggered flash flood, destroying people’s houses and farmlands across much of the country.
The situation caused a huge setback to cotton production sector that experienced a 34 percent year-on-year decline, according to the official figures.
However, the ministry said in its statement that the “astounding 71 percent year-on-year growth” had “not only surpassed the previous year’s figures but also exceeded expectations.”
“Cotton arrivals crossing the 5 million bales mark on October 1, 2023, is a momentous achievement for Pakistan,” Dr. Gohar Ejaz, the interim commerce minister, said while commenting on the development. “Last year, our total crop was 5 million bales, and this year, we are anticipating a bumper crop of 12 million bales.”
“This remarkable growth showcases the dedication and hard work of our farmers and the resilience of our cotton industry,” he added.
The minister also promised to support and promote the cotton sector of the country, saying it had always played an “indispensable role” in Pakistan’s economic development and global competitiveness.
According to the textile industry stakeholders, the country’s cotton production has been shrinking in recent years.
“The cotton output in Pakistan is declining mainly due to the climate change-related issues and reduction in the cultivation area,” Chaudhry Waheed Arshad, a top official of Pakistan Cotton Ginners Association, told Arab News earlier this year in January.