Trade with enemies
PAKISTAN has exempted tomato and onion import from Afghanistan and Iran from sales and withholding tax for four months. However, after initial consideration, the federal government deferred a decision on the import of such commodities from India. Torrential rains and flash floods have put additional pressure on Pakistan’s already ailing economy, and the government has yet to reveal a comprehensive work plan to deal with the looming crisis. International aid has started to pour in, which can help deal with the immediate challenges, but the rehabilitation and rebuilding of infrastructure will require over $10 billion. The floods have washed away about half the cropland of the country, and the threat of food insecurity is very real. The government is looking for external assistance to deal with the challenges building on the premise that the flooding was caused by global warming gases to which Pakistan contributes less than one per cent but on account of which it still has to pay a hefty price in terms of environmental damage.