The land locked mountainous state of Tajikistan is likely to become the first Central Asian state to formally join the Afghanistan Pakistan Transit Trade Agreement (APTTA) that will allow it to use the highways of both the states to start utilising the Pakistani ports for enhancing its international trade.
An official source said soon after the signing of APTTA Pakistan, we had invited all the Central Asian states to join the agreement. Both Afghanistan and Pakistan had decided to grant transit access to each others’ goods to their neighbouring countries. The response received and the eager shown by Tajikistan is a positive sign, as Pakistani ports on the Arabian Sea will allow it to easily access other regional ports. Interest has been shown by Tajikistan several times in the past, to use the Pakistani ports so that it could have an access to other markets for imports and exports. Tajikistan has proposed the construction of an international highway between the two countries through the Wakhan corridor in Afghanistan. The project is under discussion between the three governments.
An invitation to other Central Asian countries was also sent by Pakistan for joining APTTA, since their joining of the treaty will help in facilitating cross-border trade leading to increasing business activity and investment in the region. Further it would also help in removing barriers to the cross-border transport of goods and people through designated borders with faster customs inspections and reduced requirements to transfer shipments. The Central Asian states are also looking for establishing regional power transmission network and gas pipelines. Pakistan and Afghanistan are members of importing 1000MW electricity from Central Asia and gas supplies from Turkmenistan. APTTA, signed between Pakistan and Afghanistan in 2010, was to replace the 1960s treaty from January this year. However, differences over the bank guarantees and insurance cover on the transit trucks and goods have delayed implementation on the accord for more than ten months. The joining of the other regional states will help in removal of the irritants between the two countries. At present Afghanistan imports through Pakistan are one-third of its total imports, while the remaining two-thirds come through Iran and Russia.
Pakistani business community has serious reservations on the access given to Afghan trucks to ports and the Indian border, and have demanded keeping a strict check on the reentry of the imported goods by Kabul to the country. The insurance and banking guarantees are sought by Pakistan from Afghan Traders as to reduce the chances of smuggled goods to the country. Under the treaty, Afghanistan granted a reciprocal concession to Pakistani trucks to take goods without any duties to Central Asian states, where there is huge scope for Pakistani textiles, agricultural, surgical and sports goods. Pakistan, Afghanistan and almost all Central Asian states are members of the Asian Development Bank (ADB) sponsored Central Asia Regional Economic Cooperation (CAREC) that also includes China to promote regional projects in energy, transport, and trade. The source said being members of different accords further strengthens the bond as CAREC, established in 2001 also seeks ease in the movement of goods, vehicles, and people across international borders. ADB and other international financial institutions have approved over 100 CAREC-related projects worth about $16 billion including six land transport corridors that cover 3,600 km of roads and 2,000 km of railway. They traverse the CAREC region north-south and east-west, linking Europe, East Asia, South Asia, the Middle East, and beyond.
