Afghanistan urges KP govt to abolish transit trade levy

Consul General criticizes Infrastructure Development Cess, calls it a violation of Geneva Convention

Afghan Consul General in Peshawar, Hafiz Mohibullah Shakir, has voiced strong opposition to the Infrastructure Development Cess (IDC) imposed by the Khyber Pakhtunkhwa (KP) government on goods transported to Afghanistan under the Transit Trade Agreement.

During a meeting with a delegation from the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), led by Senior Vice President Zia-ul-Haq Sarhadi, the Afghan envoy termed the levy a violation of the Geneva Convention, which ensures facilitation for landlocked countries like Afghanistan. He added that such measures negatively impact bilateral trade and the regional economy.

The delegation, which included PAJCCI Director Farooq Ahmad, Coordinator Imtiaz Ahmad Ali, and former SCCI office-bearers Faiz Ahmad Faizi and Shuja Muhammad, discussed the challenges faced by traders and transporters in cross-border trade. Afghan officials, including Transport Attaché Maulvi Said Muhammad Faiz and Public Relations Officer Shahid Khan, were also present.

The consul general criticized the IDC, which was initially set at two percent but later reduced to one percent, and called for its complete abolition to facilitate smoother trade operations.

Delegation members highlighted logistical hurdles, noting that trucks from Pakistan are permitted to travel only as far as Jalalabad, after which Afghan vehicles must be hired for onward transport, significantly increasing costs and complicating logistics.

The Afghan envoy reiterated the importance of removing barriers to transit trade to strengthen economic ties and enhance regional cooperation.

Monitoring Desk
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