Afghan traders say Kandahari pomegranates have been arriving in Pakistan through the Torkham border uninterrupted this year. PHOTO: EXPRESS/EHTESHAM KHAN
RAWALPINDI:
The weeks-long suspension of commercial traffic at the Torkham border, fueled by rising political tensions between Pakistan and Afghanistan, has unleashed severe financial turmoil for wholesale traders in Rawalpindi and Islamabad.
Scores of large and medium-sized wholesalers in the twin cities have effectively seen investments worth many tens of crores of rupees wiped out. Several long-established merchants, previously among the city’s most prosperous, report that they have gone from millionaires to nearly broke.
Significant advance payments had been made to Afghan suppliers for shipments of high-value fresh produce (particularly Kandahari grapes and pomegranates), vegetables and, above all, dried fruits such as raisins and dried apricots.
Containers and articulated trucks loaded with these perishable and semi-perishable products have been stranded for weeks on the Afghan side of the Torkham crossing. As fresh produce (pomegranates, grapes and vegetables) has deteriorated beyond recovery, many trailers are reportedly being redirected back to Afghan markets.
Afghan traders have categorically refused to refund their Pakistani counterparts, insisting that they are not responsible for the deterioration caused solely by the prolonged border closure. They argue that the shipments were sent in full compliance with contractual obligations, stating that they have video evidence of the loading process and proof of transportation costs paid.
Sources in Rawalpindi and Islamabad wholesale markets confirm individual losses of Rs 40 million to Rs 100 million, with a large trading consortium facing an estimated loss of Rs 150 million.
While Afghan exporters have expressed their willingness to renegotiate the price of dried fruit shipments (offering a 15 to 20 percent reduction), they have categorically rejected any concessions related to fresh produce, specifically grapes, Kandahari pomegranates and vegetables.
Ghulam Qadir Mir, president of Anjuman Tajran Sabzi Mandi (Vegetable Market Traders Association), attributes the rising price of grapes and pomegranates in the twin cities that now retail for between Rs 600 and Rs 700 a kilogram, directly to the cut supply line from Afghanistan. The shortage has also raised the prices of domestic grapes.
Given the severity of the crisis, traders are urging the Pakistani government to initiate formal and immediate engagement with the Afghan authorities.
Their most pressing demand is that stranded containers and trailers, already paid for and awaiting entry, be granted a one-time extraordinary permit to enter Pakistan, even if all future orders are suspended.
Wholesalers of grapes, pomegranates and dried fruits, Haji Shafqat and Muhammad Meharban Khan, explained that reservations for Afghan products are usually made before the season. Orders worth Rs 40-150 million were placed in late August and September to ensure timely transportation. However, political tensions and subsequent border closures have led to catastrophic financial losses.
They note that although border closures have occurred in the past, shipments were generally released within a week to 10 days. Expecting a similar result this time, they continued with their seasonal orders, only to see their products deteriorate with the arrival of winter.
On the contrary, trucks carrying Pakistani goods to Afghanistan were also stranded on the Pakistani side, inflicting reciprocal economic damage on traders across the border.
In an effort to survive, the hardest-hit wholesalers in Rawalpindi and Islamabad have been forced to take out significant new loans to resume the modest local fruit and vegetable trade.
