PESHAWAR:Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) has kicked off 9th Focus Group Discussion with focus on developing “Barter Trade Mechanism Development”.
According to a press release issued here on Thursday, the FGD was attended by a large number of business community members from Pakistan and Afghanistan, government dignitaries and several other members from FBR, TDAP, Finance, representatives of trade associations and media.
The core objective of this FGD was to remove disparities and agree on mutual terms of reference from both sides (PAK-AFG) as well as project’s timeline and monitoring matrix to gauge the project progress and to address barriers.
Zubair Motiwala, Chairman PAJCCI shared a concise and action-oriented summary of progress in development of Barter Trade mechanism as a result of several stakeholder meetings in both countries.
He urged all participants to provide their input with focus on barter trade so an actionable plan can be finalized which will be then allocated to relevant stakeholders for execution and parallel monitoring by PAJCCI and AICC.
He emphasized that using internationally recognized banking-based trade transactions are most preferred methods however till the opening of banking channels in Afghanistan, both sides must find ways and means to ensure that trade continues for large to SME to individual border traders.
Khan Jan Alokozai; Co-Chairman PAJCCI referred to his meeting with US Treasury representative and Special US Envoy for Afghanistan where he shared his input with regards to Afghan frozen assets, non-operational banking channels due to this reason.
Obstacles in trading with Pakistan especially due to third party payment non processing by international corresponding banks though it faces no problems in case of other countries.
Motiwala summarized important points for deliberations in this session; PAJCCI will be monitoring entity, payments for barter trades will be locally processed by “Special Purpose vehicle” (SPV), regular Businessmen to Businessmen bilateral trade will continue as per current procedure.
SBP representative assured that where possible all support will be given to resolve ongoing present and future obstacles. Government of Pakistan’s express wish is “that trade should continue”.
SBP will provide written process to manage third party payments and expert advice to form special purpose vehicle for barter trade management.
Director Transit Trade agreed to the recommendation of cross stuffing, use of local containers & regulation for international shipping lines.
PAJCCI will provide detailed project management and monitoring matrix to AICC and stakeholders for necessary actions in this week.