Tooba Altaf
International trade, as a tool for inclusive economic growth and poverty reduction, is one of the top priorities for achieving Sustainable Development Goals (SDGs) across the globe. Particularly, in developing countries like Pakistan and Afghanistan, having badly damaged by perpetual instability, improved trade governance can help people earn better livelihoods. This would also draw-down the fodder for negative activities; paving way for the people to contribute positively to the development of their respective countries.
Cross-border trade between Pakistan and Afghanistan, has a history of its own economics, embedded in strategic, political, security and social context of the region. The two countries, sharing eight formal border crossings, are involved in both bilateral and transit trade, which has been often mired by fluctuations. Therefore, the potential for socio-economic gains has remained under-utilized, which makes it all the more interesting case of how improved trade can help achieve the development goals.
The most vulnerable to such fluctuations are the local populace, residing on both sides of the border, whose livelihoods depend on cross-border activities, such as transportation, small trade and daily wage labor. Leadership for Environment and Development Pakistan (LEAD) – a policy think tank – in a recent report finds out the social impact of cross-border trade on Pakistan and Afghanistan’s border regions. The study employed, the framework of SDGs while taking Torkham and Ghulam Khan Borders with Afghanistan, as a case study, to analyze the impact of trade on social dimensions such as; employment and livelihood security, health and nutrition, education and gender etc.
The challenges faced by those involved in cross-border activities include: procedural delays, border checking and control processes, issues emanating from visa regime, corruption of border authorities, weak performance and overlapping jurisdiction. With limited alternatives for livelihood, the fluctuations and uncertainty in trade impacts the workers at the lower end of the trade value chain i.e. daily wagers and loaders and unloaders.
Unstable income affects the locals’ access to health care services and education. Moreover, such areas also lack social infrastructure and services, adding salt to the injury. These border areas are deprived of health care services in the form of shortage of physicians, medicines, non-functional maternity centers, which are often located far away. Education meets the same fate; where quality education is not affordable, while chances for secondary education may not be available at all. The unaffordability of education yet entails another dimension; which is child labor i.e. the more the number of working hands- the greater the income. All of this ultimately has implications for social indicators, thus impeding the achievement of SDGs.
There is a hope that merger of erstwhile Federally Administered Tribal Areas (FATA) with Khyber Pakhtunkhwa (KP), would lead to development of local communities in border areas. This in turn depends on the realization of the potential of trade in uplifting the social and economic condition of the border areas’ people, by provincial and federal government – given the fact that trade is inclusive.
The analytical report also came up with certain policy recommendations such as, including trade issues in provincial planning frameworks and sub-national plans and implementation strategies. The impact of trade in alleviating poverty and improving living standards of the people dwelling across the border can be ensured through inclusive nature of trade, where everyone can reap the benefits of the prosperity. The merger of FATA with KP can usher into new era of prosperity of the border region populace, given the fact that policies related to trade and issues resulting from it are dealt with far-sightedness. The agenda of SDGs can only be implemented if both the governments of Pakistan and Afghanistan work jointly to ensure free-flow of trade – detached from politics. Another important point to be raised is the engagement of local communities, traders and all other stakeholders, who are ultimately at the receiving end of all such trade linked activities. Besides this, support programs such as education and skills development, will be quite effective in the long run.
In a crux, there is a need for urgency to bring together major stakeholders with powerful interests in Pak-Afghan trade, to cooperate and maximize gains for sustainable development in border region.
The author is an International Relations’ graduate, while working as Researcher at Center for Research and Security Studies (CRSS), Islamabad.
