The country’s exports and trading activities with Afghanistan have been reduced due to uncertainty and fears…reports Asian Lite News
Pakistan’s export business has been affected since Taliban seized control of Afghanistan, resulting in a delay in the supply of goods to the war-torn country via the Torkham border.
According to the traders and customs clearing agents at the border crossing, the country’s exports and trading activities with Afghanistan have been reduced due to uncertainty and fears caused by the delay in the formation of the new government in Kabul, reported Dawn.
“It’s complete chaos in Afghanistan. We don’t expect a permanent and secure business strategy from the Afghan Taliban, who seized Kabul early last week after nearly all of the country,” exporter and custom clearing agent Mujeebur Rehman said, reported the Pakistani publication.
The exporter also said that almost all banks, currency exchange markets and business centres were closed in major Afghan cities, including Kabul, so it was not possible for Pakistan exporters to deliver the consignments already booked for Afghanistan and take fresh orders for fear of losses.
“Transactions through banks and other informal channels have completely halted since the Afghan Taliban entered Kabul,” he added.
Dawn continued reporting quoting Mujeebur Rehman that most local traders had yet to make any contact with Afghan buyers as a majority of them had either gone into hiding or were unwilling to accept new consignments despite advance payments.
“Full-fledged trading activities will resume only after the new administration in Kabul announces its trade policy and custom duties for Pakistani exporters,” he said.
Last week, the terror group entered the presidential palace in Kabul soon after president Ashraf Ghani fled the Afghan capital. The Taliban announced the end of the war and gave general amnesty to everyone. However, Kabul is witnessing chaos as a large number of people have been approaching the Hamid Karzai International Airport in a bid to flee the country.
Pakistan rupee continues to slide
Continuing its downward slide, the Pakistani rupee fell from 44.7 on Monday to 45.02 on Tuesday against the UAE dirham, a drop of 0.67 per cent, hitting a nearly 11-month low, according to xe.com.
As per Khaleej Times, Pakistani currency was trading at 165.4 against the US dollar on Tuesday.
Pakistan on Tuesday received USD 2.75 billion from the International Monetary Fund (IMF) under a Special Drawing Rights (SDR) programme to support low-income countries affected by the coronavirus.
This took Pakistan’s forex exchange reserves to USD 22.25 billion, but this big jump in forex reserves, too, failed to rein in the rupee’s slide, reported Khaleej Times.
Rajiv Raipancholia, CEO of Orient Exchange, said the Pakistani rupee continues to depreciate against the US dollar over the past four months.
“The reported deficits in the current account together with inflation in certain core items such as food and oil are some of the reasons behind this fall in rupee. Increasing imports to Pakistan is another reason that dollar continues to remain strong, thus leading to a weaker rupee,” he said.
Analysts estimate that remittances to Pakistan will continue to remain strong as a weaker rupee will attract more inflow of foreign funds, reported Khaleej Times. (ANI)