Diminishing Pak-Afghan Trade: Unrealised Potential of Bilateral Commerce

Key Points:

  • The arrival of the Taliban government in Afghanistan has once again led to a decline in trade relations between both countries.
  • Just a few months after the Taliban takeover, the KP customs chief collector reported that Pakistan had lost its export volume to Afghanistan by 25 per cent.
  • Frequent mismanagement at the Torkham border explains the slowing down of cargo movement through this leading trade border.
  • The traders across both sides believe that inefficient border measures by the two states have led to the failure to realise the potential of 10 billion dollars worth of trade.
  • Pakistan’s FBR’s Directorate General of Trade published a report in 2019 that blames Afghan Transit Trade for establishing an alternate “black economy” in Pakistan.
  • Provided that both states put effective trade mechanisms and policies in place, there is a massive trade potential yet to be realised between both countries.

Ana Arooj

Ana Arooj studied International Relations from National Defence University, Pakistan. She is currently working as Research Assistant at CSCR.

Ali Afzaal Gondal

Ali Afzaal Gondal is currently pursuing a Bachelor's degree in International Relations at the National Defence University, Islamabad. He is a former intern at CSCR.

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