The Federal Board of Revenue (FBR) has introduced a 10 percent processing fee on a broader array of commercial goods transiting through Pakistan en route to Afghanistan. The newly affected items include agricultural machinery, ship derricks, cranes, industrial boilers, furnaces, ovens, and automatic data processing equipment, among others.
This move comes as part of amendments to SRO.1380(I)/2023, issued via SRO.816(I)/2025 on Saturday, further widening the scope of Afghan transit goods subjected to the fee. Previously, the 10 percent fee applied only to five main categories: chocolates and confectionery, footwear, mechanical and electrical machinery, blankets and home textiles, and garments.
The expansion follows recommendations by the Ministry of Commerce, which raised concerns about the misuse of the Afghan Transit Trade due to significantly lower customs duties in Afghanistan compared to Pakistan. Reports indicated that traders from both sides were exploiting this disparity.
To address this, the ministry suggested two key measures:
- Replacing the existing Revolving Insurance Guarantee with a 100% bank guarantee based on the assessed value of the goods.
- Imposing a 10% ad valorem processing fee on Afghan-bound goods showing unexplained increases in volume.
As per the new notification, the fee now applies to a wide range of goods, including:
- Hoists, winches, jacks, cranes, and mobile lifting equipment
- Forklifts and trucks with loading/unloading gear
- Excavators, graders, tampers, and boring equipment
- Agricultural tools such as ploughs, threshers, mowers, and dairy machines
- Machinery for cleaning or grading agricultural products
- Textile processing equipment
- Computers and data processing machines
- Broadcasting and recording devices
- Electrical components and apparatus over 1,000 volts
- Electronic waste and scrap
This expansion is seen as part of a broader effort to safeguard Pakistan’s economic interests and address loopholes in the Afghan Transit Trade system.
