KARACHI, Dec 22: Kabul and Jalalabad have emerged as two main destinations for plastic goods export from Pakistan despite the fact that these products face stiff competition from the cheaper plastic products from Iran.

The plastic goods manufacturers exported goods worth over Rs50 million during July-November 2005, as compared to a very negligible quantity of these goods sent to Afghanistan through illegal channels.

“Afghans are increasingly opening shops in Kabul and Jalalabad where peace and calm have prevailed. Some Afghan nationals are negotiating business regularly with their Pakistani counterparts and the demand for Pakistani goods is on the rise since July 2005, said Zafar Saeed, Chairman Pakistan Plastic Manufacturers Association (PPMA), adding that the infrastructure in these two main cities is also improving. After reaching these two main destinations, Pakistani goods find way to other parts of Afghanistan.

This is the first time that legal exports from all parts of the country are gaining momentum as plastic goods’ previously, used to land in Afghanistan through various channels.

However, transporters who carry goods to Kabul from Karachi are charging Rs120,000 for a 40 ft. container as compared to Rs80,000 a few months ago. He said that the transporters linked the rise in freight to the rising diesel prices coupled with the shortage of containers as a sizable number of transporters were engaged in shipment of relief goods to the quake’ affected areas.

The transportation cost of plastic goods to Afghanistan is just Rs30,000 less than the sea freight for USA which amounts to Rs150,000 per 40 ft. container.

In sharp contrast to Pakistan, Iran has a well-organized transportation system besides, the abundant availability of indigenous raw material which makes their products 10 per cent cheaper than the Pakistani goods. However, the Pakistani products excel in quality as compared to the Iranian goods, he said.

He said exporters from the Punjab pay only Rs80,000, while the shipment cost from Peshawar to Kabul and Jalalabad ranges between Rs40,000 to Rs50,000. The Karachi-based exporters are the losers for paying the high transportation charges.

The transporters take the goods from Karachi to Peshawar first, and then proceed to Torkham and to Kabul.

“We can utilise the Afghanistan market more effectively if the transportation charges from Karachi are reduced to Rs80,000,” Zafar said adding that some exporters are now planning to achieve Rs200 million export target for plastic goods during the current fiscal 2005-06.They are currently exporting plastic furniture, plastic households, and crockery etc.

The government had reduced the import duty on plastic raw materials from 10 to 5 per cent in the 2005-06 budget, while there is 25 per cent customs duty on import of finished plastic goods. “Our cost of production is still high due to multiple reasons,” he said.

In Pakistan, Zafar said, per capita consumption of plastic has increased to 3.5 per kg per annum as compared to two kg five years ago.