{"id":20885,"date":"2025-01-16T20:10:57","date_gmt":"2025-01-16T15:10:57","guid":{"rendered":"https:\/\/dailyrapidnews.com\/eng\/?p=20885"},"modified":"2025-01-16T20:10:59","modified_gmt":"2025-01-16T15:10:59","slug":"afghan-transit-trade-and-suggestions-for-both-countries","status":"publish","type":"post","link":"https:\/\/dailyrapidnews.com\/eng\/2025\/01\/16\/afghan-transit-trade-and-suggestions-for-both-countries\/","title":{"rendered":"Afghan Transit Trade and suggestions for both countries"},"content":{"rendered":"\n

By Dr Ashraf Chohan
Chairman PMLN UK
Chief Editor Daily Rapid Lahore<\/strong><\/p>\n\n\n\n

 sources say that in last fiscal year 2023-24, volume of Afghan transit was $2.887bn. <\/strong><\/p>\n\n\n\n

In the wake of crackdown on smuggling, the Afghan transit trade has declined by 89 per cent in the first five months of the current financial year.<\/strong><\/p>\n\n\n\n

Afghan Transit Trade<\/strong><\/p>\n\n\n\n

The Afghan Transit Trade (ATT) refers to the transportation of goods and commodities through one country\u2019s territory (Pakistan, in this case) for delivery to landlocked Afghanistan. It operates under the Afghanistan\u2013Pakistan Transit Trade Agreement (APTTA), which governs the legal framework for facilitating trade between the two nations. The trade primarily includes goods like machinery, food items, fuel, and consumer goods imported through Pakistani ports (e.g., Karachi and Gwadar) and transported to Afghanistan.<\/p>\n\n\n\n

Volume of Afghan Transit Trade<\/strong><\/p>\n\n\n\n

The volume of Afghan transit trade has fluctuated due to various factors, including political instability, security issues, and economic challenges. As of recent estimates:<\/p>\n\n\n\n

\u2022 In 2023, Afghan transit trade through Pakistan saw a significant increase, reaching $5 billion, according to official reports.<\/p>\n\n\n\n

\u2022 However, illicit trade (smuggling) often undermines accurate volume reporting, as goods imported under the transit trade framework are sometimes diverted into Pakistan\u2019s domestic market.<\/p>\n\n\n\n

Effects of the Pak-Afghan Conflict on Trade<\/strong><\/p>\n\n\n\n

The Pak-Afghan war, insurgencies, and cross-border tensions have had several impacts on Afghan transit trade:<\/p>\n\n\n\n

    \n
  1. Disruption of Supply Chains \u2022 Frequent border closures, such as at Torkham and Chaman, disrupt trade routes, delaying shipments and increasing costs. \u2022 Security risks discourage traders and transport companies from engaging in cross-border commerce.<\/li>\n\n\n\n
  2. Economic Costs \u2022 Pakistan faces revenue losses due to smuggling and reduced transit fees. \u2022 Afghanistan suffers from limited access to essential goods, inflating prices for consumers and stifling its economy.<\/li>\n\n\n\n
  3. Reduced Trade Confidence \u2022 Persistent conflict reduces the trust of Afghan traders in using Pakistani ports and routes, pushing them toward alternatives like Iran\u2019s Chabahar Port or routes through Central Asia.<\/li>\n\n\n\n
  4. Growth of Informal Economy \u2022 The lack of effective governance and mutual cooperation has fueled an informal economy, including smuggling and corruption, harming both countries\u2019 formal trade systems.<\/li>\n<\/ol>\n\n\n\n

    Advice to Both Sides<\/strong><\/p>\n\n\n\n

    For Pakistan<\/strong><\/p>\n\n\n\n

    1.  Strengthen Security Measures\n\n  \u2022   Enhance border security to prevent smuggling while ensuring smooth transit for legitimate goods.\n\n2.  Reform Transit Policies\n\n  \u2022   Simplify customs procedures to make Pakistan a more attractive transit hub.\n\n3.  Diversify Ports and Routes\n\n  \u2022   Promote Gwadar and other ports as viable alternatives to Karachi, increasing capacity and efficiency.\n\n4.  Diplomatic Engagement\n\n  \u2022   Improve relations with Afghanistan through trust-building measures and collaborative economic projects.<\/code><\/pre>\n\n\n\n
    For Afghanistan<\/strong><\/p>\n\n\n\n
    1.  Expand Trade Partnerships\n\n  \u2022   Diversify trade routes and agreements with regional players like Central Asian states, Iran, and India to reduce dependence on Pakistan.\n\n2.  Strengthen Domestic Economy\n\n  \u2022   Invest in infrastructure and industries to decrease reliance on imports.\n\n3.  Ensure Transparency\n\n  \u2022   Work to reduce corruption and ensure that goods meant for transit are not diverted.\n\n4.  Focus on Stability\n\n  \u2022   Address internal conflicts and establish policies that encourage foreign investment and trade.<\/code><\/pre>\n\n\n\n
    Mutual Recommendations<\/strong><\/p>\n\n\n\n
    1.  Revise APTTA\n\n  \u2022   Update the Afghanistan-Pakistan Transit Trade Agreement to address current challenges, ensuring fair and efficient trade.\n\n2.  Promote Regional Connectivity\n\n  \u2022   Collaborate on initiatives like the China-Pakistan Economic Corridor (CPEC) and the TAPI pipeline to benefit from shared infrastructure and economic opportunities.\n\n3.  Facilitate Confidence-Building\n\n  \u2022   Establish regular dialogue to address disputes and create joint mechanisms for resolving trade and security issues.\n\n4.  Combat Smuggling Together\n\n  \u2022   Launch joint operations and share intelligence to tackle illicit trade.<\/code><\/pre>\n\n\n\n
    By fostering cooperation and mutual respect, both nations can transform their trade relations into a catalyst for economic growth and regional stability.<\/p>\n","protected":false},"excerpt":{"rendered":"
    By Dr Ashraf ChohanChairman PMLN UKChief Editor Daily Rapid Lahore  sources say that in last<\/p>\n","protected":false},"author":1,"featured_media":19741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[24,20],"tags":[],"class_list":["post-20885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-opinion"],"yoast_head":"\nAfghan Transit Trade and suggestions for both countries - Rapid News<\/title>\n<meta name=\"description\" content=\"By Dr Ashraf Chohan | Chairman PMLN UK | Chief Editor Daily Rapid Lahore\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dailyrapidnews.com\/eng\/2025\/01\/16\/afghan-transit-trade-and-suggestions-for-both-countries\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Afghan Transit Trade and suggestions for both countries - 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