Pakistan has banned the import of goods that are prone to smuggling through its territory to Afghanistan. This is a major policy shift and a sign of Islamabad's growing frustration with the misuse of the Afghan Transit Trade Agreement (ATTA).
The new trade regime includes a complete ban on some goods, a 10% fee on other goods, and a requirement for bank guarantees. These measures are designed to ensure that Afghan goods reach their final destination and to prevent smuggling.
The ban on certain goods is targeted at those that Afghanistan does not consume itself, such as tires, black tea, nuts and dried fruits, fabrics, cosmetics, vacuum flasks, and home appliances.
The 10% fee applies to goods such as chocolates, footwear, machinery, blankets, and garments.
The requirement for bank guarantees is a new one. Afghan importers will now have to provide bank guarantees equal to the duties and taxes on their imports. These guarantees can be cashed in if the imported goods do not reach Kabul.
Pakistan's decision to take these measures is a sign of the growing tension between Islamabad and Kabul. Pakistan has long accused Afghanistan of allowing smuggling to take place through its territory. This smuggling has caused billions of dollars in tax losses for Pakistan and has damaged the Pakistani economy.
Pakistan's new trade regime is a clear message to Kabul that it will no longer tolerate the misuse of the ATTA. It remains to be seen how Kabul will respond to these measures.
