FPCCI criticises banks for not issuing forms for land trade with Turkey

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) criticised the commercial banks for not issuing import and export forms for land-based trade with Turkey, a statement said on Thursday.

FPCCI president Mian Nasser Hyatt Maggo said that the commercial banks were reluctant to issue export forms (e-forms) and import forms (i-forms) for the land-based trade with turkey through train and trucks, under transnational and UN-ratified TIR Convention, on the false and fabricated pretext that it involves trade with a sanctioned country.

Maggo appreciated the public-private partnership (PPP) in making Pak-Turkey cargo train service possible, and commended the successful and timely completion of its first run.

He appreciated the efficient operational coordination and integration of Pakistan Railways and private sector to make it possible, which will have a multiplier effect on bilateral trade volume of Pakistan with Turkey and Azerbaijan as well.

FPCCI president also acknowledged the relentless efforts of the FPCCI’s Pakistan-Turkey Joint Business Council (PTJBC) over the past twenty years to make the dream of Pak-Turkey land-based trade a reality, which will be cost-effective, time-saving and reliable.

He, however, lambasted the bottlenecks being thrown in the way by the commercial banks.

The FPCCI had written a letter to the Federal Minister of Finance and Revenue Shaukat Tarin in December 2021, to apprise him of the issue; but, unfortunately no action has been taken as yet, he added.

He maintained that the business and trade community of Pakistan is very enthusiastic on the prospects of the land-based trade with Azerbaijan and Turkey, that they have heavily pre-booked the truck and train cargoes under TIR; whereas, the initial truck-based cargoes under TIR have successfully reached Azerbaijan and Turkey in October 2021.

FPCCI’s Pakistan-Turkey Joint Business Council (PTJBC) chairman Amjad Rafi has demanded that the State Bank of Pakistan (SBP) should swing into action immediately, through the regulatory mechanism at its disposal, to make the commercial banks start playing their legally-binding facilitative role to issue trade documentation to the business and trade community of the country.

This will surely lead to larger volumes of bilateral trade with Turkey due to lower freight costs and timely deliveries in approximately 14 days instead of 30 days, he added.

The FPCCI chief proposed that the government should form an empowered committee to look into the matter for a speedy resolution before any more damage can be done.

The proposed committee should be headed by the FPCCI president, representatives of the Ministry of Finance, the Ministry of Commerce, the SBP and National Logistics Cell (NLC).