Pakistan – Afghanistan Cross Border Trade Meeting



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Key recommendations


A summary of recommendations by sector is presented below:

Government and regulatory agencies


  • Vitamin D3 in edible oils should be added at a standard of 3000 IU (international units) per kg;

  • Federal and provincial-level fortification standards for wheat flour should be harmonized (PSQCA and Provinces);

  • The Government of Pakistan should eliminate import the high import tax on premix. (NFA with financial and technical support from GAIN and other partners);

  • The Government of Pakistan may also control the price of premix (Follow-up from all partners);

  • Fortified products for export to Afghanistan should be certified (Private and Public Sector) in Pakistan, through the Pakistani Food Authorities/PSQCA/PCSIR/accredited labs or certification bodies. Both countries should follow the same procedures (Both projects). Valid certificates of analysis should be issued by an accredited lab. A list will be provided by the GOP (PSQCA and PCSIR should provide the list and share with Afghan regulatory agencies and ANSA);

  • Correct labeling/food specification should be mandatory: Certification/inspection bodies will be responsible for issuing mandatory labeling specification (PSQCA should disseminate the mandatory labeling specifications and share with producers’ associations); and,

  • Export/Import verification: Governments should implement a robust M&E system (Both projects).

Industry, export and trading sectors


  • Awareness raising campaigns must be developed for the general populations in Pakistan and Afghanistan to promote food fortification (Both projects);

  • Pakistani participants expressed the need to be exempt from import taxes on fortified wheat flour and oil entering Afghanistan. The Afghan delegation opposed this recommendation, as wheat flour and edible oil is a significant source of tax revenue for the government. (Needs follow-up);

  • Donors should support the provision of iron premix for wheat flour for at least a year, during which PFMA/PVMA would advocate for government support;

  • A coordination/negotiation committee should be established among traders from Pakistan and Afghanistan to handle common problems. (Both projects, particularly in KPK and Baluchistan where most traders operate);

  • Pakistan’s government should review the level of government support to millers and traders in Iran and Kazakhstan and replicate it in Pakistan. (PFMA/PVMA to lead);

  • QA/QC standards should be applied on both sides to avoid substandard wheat flour and oil trade (Regulatory agencies on both sides).

General recommendations


  • Guarantee a one-year business visa to Pakistani businessmen visiting Afghanistan;

  • Hold a similar cross border trade meeting in Afghanistan. (Date to be announced);

  • The Afghan delegation’s general recommendation is to see Pakistan producers and exporters ship only fortified quality wheat flour and edible to Afghanistan.

Next steps


Meeting recommendations will be translated into actions and incorporated into future work plans. Immediate next steps derived from the recommendations need to be shared and approved by key stakeholders from both countries. These are:

  • Preparing an agreement with PSQCA to revise the standards for fortified edible oils (addition of vitamin D3 at 3,000 IU/kg) and updating and harmonizing standards for fortified wheat flour based on the most recent WHO guidelines and in harmony with the CAR standards;

  • NFA taking the lead and following up on the status of the exemption of premix from import and sales taxes, updating all stakeholders on the result of negotiations with the Federal Bureau of Revenue;

  • Creating a follow-up mechanism/group including representatives of GAIN, key stakeholders and other partners on both sides of the border (Pakistan: NFA, DFID/SNIP, WFP, PFMA, PVMA, etc. Afghanistan: Ministry of Health, Ministry of Commerce and Industry, ANSA, Chamber of Commerce and Industry, AFMA, etc.) tasked to assess the feasibility, and how best to implement, key recommendations, advocate and push the policy agenda towards:

        • Exploring the feasibility and likelihood of premix prices being controlled in both countries;

        • Identifying what is required to secure an inspection certificate for exported fortified wheat flour and edible oils to Afghanistan (Pakistan);

        • Following up on Pakistani producers/exporters’ request that duty taxes on fortified wheat flour and edible oil products be exempt;

        • Establishing an official list of accredited labs in Pakistan issuing valid certificates of analysis and sharing it with Afghanistan regulatory agencies (Pakistan);

        • Following up with standards and regulatory agencies in Pakistan to disseminate mandatory labeling specifications among flour millers and oil producers/ manufacturers, exporters/traders, and professional associations (PFMA, PVMA, Traders’ Association), and advocating for compliance and enforcement of labeling specifications by millers (Pakistan);

        • Following up with government officials (Pakistan Secretary Health; Deputy Head of Mission of Afghanistan) on promises made during the meeting to support food fortification, and in particular making food fortification mandatory in both Pakistan and Afghanistan;

        • Initiating the establishment of the inter-country traders’ coordination committee and providing it with technical, financial and logistic support, beginning in KPK and followed by Baluchistan (GAIN/Uzma to take the lead with Mohammad Qavi in Baluchistan).

Conclusions


By all standards the meeting achieved its objectives and expected results, in terms of the number of participants; the topics addressed; the level of stakeholder engagement on key issues pertaining to production, wheat price policies, trade policies and regulations, cost of fortification, standards setting and harmonization; and who will be responsible for quality assurance and quality control in the mills, regulatory monitoring, etc.

The meeting reached consensus on certain issues and left others pending for further discussion. A follow-up mechanism will be put in place to advance discussions between partners on the outstanding issues. Participants recommended holding a second cross border trade meeting in Afghanistan, the date and location of which will be announced in due course.

Lastly, the success of the meeting is measured not only by the pertinence of its conclusions and recommendations, but by the importance and relevance of the follow-up. In the weeks immediately following the meeting, several agreements were initiated or finalized with key stakeholders:


  • A grant with Punjab Food Department aiming to improve wheat flour fortification regulations and monitoring for flour exports from Pakistan to Afghanistan; compliance with importing country (AFG) regulations; and the regulatory capacity of the Pakistan government and improve fortification quality monitoring in project assisted geographic areas;

  • A grant with PFMA to strengthen its capacity to boost and monitor exports of quality checked fortified wheat flour at the mill level in compliance with Afghanistan regulatory and market requirements, including management of premix and packaging/labelling revolving fund.

  • A cooperation program document and a grant with PCSIR to train mill staff and technical personnel on QA/QC, and on assessing the incidence, level and source of Aflatoxin in Afghanistan and Pakistan by surveying wheat and wheat flour supply in Pakistan.

  • A draft grant with PSQCA aiming at revision of standards for wheat flour fortification in conjunction with the latest evidence-based WHO guidelines and harmonization between provinces, as well as the inclusion of vitamin D in fortification of edible oil/ghee.

  • Beginning negotiations with oil manufacturers in KPK and Baluchistan to support selected oil refineries in fortification of edible oils for export to Afghanistan.





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