Pakistan Releases Millions Of Dollars Of Afghan Imports

Tuesday, January 18 6:25 PM SGT

PESHAWAR, Pakistan (AP)--Four years after millions of dollars worth of goods destined for Afghanistan were confiscated in the southern port city of Karachi, Pakistan's military rulers released the merchandise, Afghanistan's Taliban's deputy trade minister said Tuesday.

Pakistan's military ruler Gen. Pervez Musharraf ordered the goods released without any payment of storage fees, Maulvi Fazil Mohammed Faizan, deputy trade minister, said.

In 1996 Pakistan confiscated hundreds of shipping containers, filled with electronic goods, machinery, cosmetics and black tea leaves, at its port in Karachi. At the time Pakistan accused neighboring Afghanistan of abusing a transit trade agreement, which allowed Afghanistan - a landlocked country - to import duty free goods through Pakistan.

Routinely the goods are taken to Afghanistan and then smuggled back into Pakistan and sold on the black market at reduced prices because they aren't subject to import duties.

For Pakistan, this has meant the loss of millions of rupees of revenue from import taxes and duties.

Despite releasing the containers, Pakistan's new military government says it is determined to curb smuggling.

Faizan said Pakistan and the Taliban are trying to finalize a new trade agreement in an attempt to end the abuse.

But in the meantime Afghanistan asked Pakistan to release containers imported under the old agreement, he said.

"Our demand that the goods already imported under the old agreement should be released has been accepted," said Faizan.