PESHAWAR: Trade between Pakistan and Afghanistan has seen a sharp decline, dropping from $2.5 billion to just $1 billion annually, primarily due to inconsistent trade policies and frequent border closures caused by political tensions.
According to Ziaul Haq Sarhadi, Vice President of the Pakistan-Afghanistan Joint Chamber of Commerce, the trade volume that once thrived between the two neighboring countries has significantly contracted. He emphasized the urgent need for Pakistan to seek access to Central Asian markets to revive and expand its regional trade footprint.
“Policy inconsistency and border disruptions have severely impacted commerce. Stability and strategic connectivity with Central Asia are crucial for sustainable growth,” Sarhadi noted.
Pakistan traditionally exports cement, steel bars, pharmaceuticals, vegetables, flour, and sugar to Afghanistan. In return, Afghanistan exports fresh fruits and vegetables to Pakistan. However, the ongoing political instability within Afghanistan has further strained trade flows.
The situation worsened in February this year when the Pakistan-Afghanistan border was closed following heightened tensions. This closure not only led to substantial tax revenue losses unning into millions of rupees but also rendered thousands of workers jobless, from Karachi to the Torkham border, as cross-border businesses came to a standstill.
Economic analysts warn that if steps are not taken to restore trade routes and implement consistent policies, both countries risk long-term economic setbacks.
