The move comes after the relations between Kabul and Islamabad became strained over accusations of harboring militants, Pakistan has “stymied” Afghanistan’s efforts to trade with India.
“Pakistan wants to increase exports to [Afghanistan] by exempting tariffs,” said Afghan Economic Expert, Azrakhsh Hafizi. “We should be patient whether to exempt tariffs or not,” he added.
Afghanistan Chamber of Commerce & Industries (ACCI), however, welcomes the expansion of trade relations with Pakistan, but not favoring tax immunity deal with the country.
“It is unacceptable for the government of Afghanistan to exemption taxation on Pakistani [goods] because Pakistan’s exports will increase and it is not in our favor,” said ACCI Spokesman, Seyam Pasarly.