Afghanistan-Pakistan Trade Declines 74% Amid Political Tensions

Trade between Afghanistan and Pakistan has plummeted by 74%, dropping to $358 million due to political tensions and the closure of key borders.

Significant Decline in Trade Between Afghanistan and Pakistan

According to recent statistics from the Pakistan Trade Development Authority, the volume of trade between Afghanistan and Pakistan has reached its lowest point in the last fiscal year. This decline, registering a 74% drop, has reduced trade from $1.3 billion to approximately $358 million.

Causes of the Trade Slowdown

Political tensions and the closure of major border crossings such as Torkham, Chaman, Kharlachi, Ghulam Khan, and Angoor Ada are identified as primary factors contributing to this trading recession. Pakistani officials have noted that the resumption of trade relations is contingent on concrete actions by the Taliban government in combating terrorism.

Significant Reduction in Cargo Transit

The transit of goods from Afghanistan to Pakistan has also been severely affected. The number of containers shipped has plummeted from 89,000 containers valued at $5 billion to just 11,592 containers worth $367 million. This situation has not only harmed Afghanistan’s economy but has also put pressure on agriculture, spice trade, and transport sectors in Pakistan.

Economic and Agricultural Damages in Pakistan

The decline in spice exports from Pakistan to Afghanistan, coupled with a halt in the shipment of agricultural products such as potatoes and vegetables, has led to a 50% reduction in potato cultivation and significant financial losses for Pakistani farmers. Meanwhile, chambers of commerce in Khyber Pakhtunkhwa are calling for urgent resolution of border issues and the resumption of trade while some business leaders in Peshawar emphasize the need for national security.