Pak-Afghan trade, a promising opportunity of collective prosperity

Pakistan and Afghanistan are bonded with historical and deep-rooted relations.

(APP) – At a time when the world economy has contracted to a historic low due to the spread of COVID-19, mostly hitting hard the external trade, the promotion of Pak-Afghan could be a silver lining to promote regional trade for collective benefit of both the neighboring brotherly countries.

Pakistan and Afghanistan are bonded with historical and deep-rooted socio-economic, trade and cultural relations at government level as well as through people to people contacts. Keeping in view the developing world trade trends that lead towards promotion of regional trade as is witnessed the European Union or Association of South East Asian Nations (ASEAN) countries, the promotion of trade between Pakistan and Afghanistan provides a promising opportunity for future development. In the current times, economy and trade are considered to be important tools of globalization, however now the countries prefer to adopt the new regional trade model for increasing regional connectivity and economic integration between the regional courtiers.

Geo-strategically Pakistan and Afghanistan are important countries connected with energy rich and full of natural resources Central Asian States. Both of the countries can play the role of bridge to connect the landlocked energy potential Central Asian States with Europe and other world through maritime trade.

According to Trade Development Authority of Pakistan (TDAP), Pakistan and Afghanistan are the biggest trading partners. State Bank of Pakistan (SBP) data says that during the first 11 months of the FY 2019-19, export from Pakistan to Afghanistan recorded 33.4 percent decreased and were recorded at $ 1.101 billion. Likewise the imports from Afghanistan were also affected and declined by 36.79 percent to $119.32 million during the last financial year According to report issued by International Institute of Trading Economic, in 2019 export from Afghanistan to Pakistan were recorded at $ 579.59 million which included products like fruits, dry fruits and vegetables.

Former President Frontier Customs Agents Association, Mr Ziaul Haq Sarhadi said that bilateral trade between Pakistan and Afghanistan in previous years reached to $ 2.5 billion but in this year it decreased, due to COVID-19 pandemic. He said because of Coronavirus border between both sides was closed for around two months and after the Prime Minister Imran Khan announced that Pak- Afghan border was open 24 hours.

He said that after the new settlement in FATA and KPK region, the bilateral trade also affected and now the new system are needed to be adjust and enhances the coordination for increasing Pak-Afghan trade.

Former President KPK Chamber of Commerce and Industry, Haji Muhammad Afzal said that whenever there is any terrorist incident across the border, both the boarder entries at Chaman and Torkham are closed by the two governments , which not only affects the trade but the issue creates food shortages.

He said trade and economic connectivity between both the countries are necessary for development and prosperity in both sides of the border. He said that Pakistan also needs connectivity with energy rich Central Asian States and with other worlds as well landlocked Afghans and five Central Asian States also need to connect their trade with nearby Pakistan harbors.

He also stressed the need to modernize the trade system between both sides to continue the flow of bilateral trade for increasing economic and trade activity. He said that people near border are mostly dependent of the continuation of the bilateral trade and for continuation and removing the hurdles in future of both Pakistan and Afghanistan must sit together and improve the system.

Meanwhile, the transit trade was mostly affected by the closure of the border and in recent future both sides also engage in negotiation to review the past agreement also.