Pakistan Greenlights One-Time Re-Export of Afghan Cargo Amid Trade Stalemate
Relief for Afghan Importers
Karachi: The government of Pakistan has permitted a one-time re-export of Afghan transit cargo that has been stranded at ports, particularly in Karachi. This decision aims to alleviate the burden on importers facing escalating demurrage fees, as reported by officials on Wednesday.
Since October 11, trade between Pakistan and Afghanistan has been at a standstill due to border closures following clashes between the two nations' forces last year.
This situation has resulted in a significant slowdown of bilateral trade and the movement of transit cargo, primarily originating from Karachi port.
Haji Abdul Nafay Jan Achakzai, President of the Chaman Chamber of Commerce, mentioned that the Ministry of Commerce has been sending letters to individual importers who requested permission to re-export their cargo to mitigate losses.
Achakzai noted that cargo has been held at ports since October of the previous year, prompting importers to seek a one-time waiver for re-export.
He stated, 'This will provide Afghan importers with the chance to utilize alternative ports or routes for transporting their goods to the Afghan market.'
Although the Ministry of Commerce has not issued an official statement, sources indicate that the commerce minister has the authority to grant such exemptions.
Achakzai reported that as of last week, over 6,500 containers were stuck at Karachi ports, leading to increased demurrage costs for importers.
The majority of these stranded containers—around 3,000—are from Malaysia and contain palm oil intended for consumption in Afghanistan.
Additionally, he mentioned that approximately 700-800 containers are trapped at the Chaman and Torkham borders.
Most of the cargo is sourced from Malaysia, Vietnam, and China, with some importers reportedly seeking assistance from the ambassadors of these countries to obtain one-time re-export waivers.
The volume of Afghan imports transiting through Pakistan has sharply decreased over the last two years, plummeting from USD 6.7 billion in FY23 to USD 2.4 billion in FY24, and further down to USD 1.01 billion in FY25, as Afghan importers explore alternative routes.