Laraib Nisar
Pak-Afghan trade despite the increased instability in Afghanistan is a good sign for the regional economic connectivity, writes Laraib Nisar.
Pak-Afghan trade has a huge potential to spur economic activity and change people’s lives for good in both the countries. Historically, Pakistan has been one of the largest trading partners of Afghanistan, with huge bilateral and transit trade engagements, and Afghanistan has remained the third largest importer of Pakistan’s goods, hence, the bilateral and transit trade is highly significant for both the countries. Though the volume of Pak-Afghan trade between Pakistan and Afghanistan kept fluctuating in the past with plunges in the last decade. The volume dropped from $1.5 – $2 billion to $754 million in 2020, due to tense relations between former Kabul governments and Islamabad. However, this year proved to be good for Pak-Afghan trade as the volume increased to around $870 million in the April – July period due to the current government’s initiatives, according to the Commerce Ministry data.
Surge in Pak-Afghan Trade Despite Increased Instability
The surge in Pak-Afghan trade despite the increased instability in Afghanistan post the Taliban takeover of the country was a good sign for regional economic connectivity. In order to highlight the challenges hindering bilateral and transit trade between Pakistan and Afghanistan, the Center for Research and Security Studies (CRSS), a private think tank, invited a delegation of Afghan traders and trade chambers’ representatives on a three-day visit to Pakistan. The delegation met senior Pakistani government officials from the customs department and FBR as well as the members of the Pak-Afghan Friendship Group formed under the supervision of Speaker National Assembly to oversee the visa and trade related policies for Afghanistan.
The delegation, under the headship of Mr. Khan Jan Alokozai, co-president Pak-Afghan Joint Chamber of Commerce and Industry, apprised the Pakistani stakeholders about the major issues faced by Afghan traders in their business dealings with the Pakistani border officials. The insufficient capabilities of the National Logistics Cell (NLC), congestion at the border crossing points, low scanning capacity, small number of terminals and godowns, unregulated taxations, and the issue of return of empty containers do not only cause delays in the delivery of goods, but also sometimes lead to the spoilage of the goods, as most of the items imported into Pakistan from Afghanistan are fresh fruits and vegetables.
Pakistani Stakeholders Commit To Improving Pak-Afghan Trade
The Pakistani stakeholders gave due consideration to the concerns raised by the Afghan delegates and assured them of tabling their requests and queries to the relevant departments and officials for an earliest resolution of their problems, as Pakistan views its relationship with Afghanistan from a geo-economic lens and is keen to facilitate and enhance the bilateral and transit trade between Afghanistan and Pakistan. Moreover, Afghanistan is of key economic significance for Pakistan because Afghanistan is the gateway to the Central Asian Republics (CARs), and the only way for Pakistan to engage in trade with the CARs is through Afghanistan, hence Pakistan needs to have a beneficial relationship with Afghanistan especially in the trade and economic sector. With Pakistan’s close ties with China and the running of China Pakistan Economic Corridor (CPEC) – the flagship project of the Chinese Belt and Road Initiative, through Pakistan, it is expected that Afghanistan will soon be engaged in this regional connectivity endeavor.
A Bilateral And Regional Approach
A good bilateral relationship between the neighboring countries is in the best interest of both Afghanistan and Pakistan, as a connected and well-integrated Af-Pak region will not only ensure peace but also economic, social, and political stability in the whole region. Several problems have arisen in the wake of the regime change in Afghanistan, both the countries should make mutual and unilateral efforts to turn the persistent challenges into opportunities and work together for a prosperous region.
The author Laraib Nisar is a Defense and Strategic Studies’ graduate, working as a Program Coordinator at the Center for Research and Security Studies (CRSS), Islamabad.
