Border challenges halt Pakistan-Afghanistan trade

PESHAWAR:

Peshawar serves as a gateway to the Pakistan-Afghanistan border, facilitating the import and export of various products. The Torkham border acts as a pathway, allowing trade between the two countries to expand on a global scale.

Pakistan and Afghanistan share a border that stretches over 2,600 kilometers. After the implementation of border fencing, the illegal movement of goods across the border has been reduced to some extent.

There are 18 trade points along the Pakistan-Afghanistan border, with Torkham and Chaman being the main crossing points. Torkham, located in Khyber-Pakhtunkhwa, and Chaman, located in Balochistan, are connected to the Jalalabad and Kandahar provinces of Afghanistan respectively.

According to a survey conducted by the Pakistan-Afghanistan Joint Chamber of Commerce, trade between the two countries reached $2.5 billion in 2010. However, this figure declined to $1.6 billion before increasing slightly to over 1 .8 billion in 2022-23.

Pakistan’s exports to Afghanistan include various categories such as cereals (25%), sugar and confectionery (4%), edible vegetables, roots and tubers (7%), fruits, nuts and peels of melons and citrus fruits (15%), salt, sulphur, earth stones (13%), animal or vegetable fats and oils (7%), plastics and articles thereof (5%), pharmaceuticals (13%), wood and articles made of wood, charcoal (6%) and iron and steel (5%).

The main potential imports from Afghanistan include figs, grapes, almonds, onions, cumin seeds, apples, beans, cotton and, most notably, rough gemstones.

In Peshawar, there are carpets, plastics and other utensils labeled as Iranian products but made in Pakistan. In addition, goods such as oil, petrol and other contraband from Iran are sold at lower prices in Peshawar and surrounding areas.

Speaking to The Express Tribune, Shah Jahan Khan, an exporter in Torkham, highlighted the challenges faced by traders operating between Pakistan and Afghanistan. Despite bilateral trade and Afghanistan importing more goods than Pakistan, frequent border closures result in significant economic losses for businesses in both countries.

Sharing his views with The Express Tribune, Jamsheed Khan emphasized the need for joint efforts by Pakistan and Afghanistan to address the difficulties faced by traders. He suggested improved border management and bilateral trade talks involving top officials to improve economic conditions in both nations.

Former president of Sarhad Chamber of Commerce and Industry, Zahid Shinwari expressed concerns to The Express Tribune about the decline in Pakistan-Afghanistan trade from $1.5 billion to $5 million. He noted competition from Iran and China, urging authorities to find solutions beneficial to traders in both countries.

He suggested that if the US and Europe, as well as Iran, Saudi Arabia, India and Nepal, can engage in trade, there is no reason why Pakistan and Afghanistan cannot do the same.

Khyber-Pakhtunkhwa Chamber of Commerce and Industry President Fawad Ishaq urged governments to ease trade conditions for traders, highlighting the cultural and religious similarities between the two nations.

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He cited an agreement between China, Pakistan and the Afghan Taliban administration to expand the China-Pakistan Economic Corridor (CPEC) in Afghanistan. However, little progress has been made so far, underscoring the urgent need to speed up work on the project.

“In our bazaars and shops, Chinese and Iranian products are easily available,” he observed, pointing to the Karhano market, where both legal and illegal products from these countries are sold.

He added that recent operations in Iran’s border areas would also affect Pakistan-Iran trade, underscoring the need for Pakistan to improve trade relations with both Iran and Afghanistan. He called for collective efforts to resolve issues arising from the closure of Torkham’s borders, which were causing significant economic losses.

Ziaul Haq Sarhadi, Pakistan-Afghanistan Joint Trade Coordinator, reported a decline in bilateral trade to $80-90 million from $2.5 billion previously. He highlighted the impact of the change of governments in both countries on trade dynamics and suggested addressing the issues through mutual dialogue.

He added that before the political changes, the situation was favourable, but after the merger of the tribal areas and the implementation of a policing system, truck drivers at the Torkham border demanded bribes at checkpoints, resulting in resentment among them.

He noted that the Torkham border was closed for over ten days, resulting in significant revenue losses of over Rs 88 billion to the governments of both Pakistan and Afghanistan.

He proposed a simplified visa process for border drivers, suggesting that both the Pakistani and Afghan governments issue red cards to facilitate movement. He explained that it was a costly and time-consuming exercise to apply for a visa every time a driver needed to make a trip to any country. He cited the Geneva Convention, emphasizing the need to provide facilities to Afghans at seaports and advocating similar treatment at the Torkham border.

“Most of the market is dominated by Chinese and Iranian products,” Sarhadi observed, warning that if this trend continues, Pakistan may lose Afghanistan as a trading partner.

He underlined the importance of cooperation efforts between Pakistan and Afghanistan, especially in light of the Taliban regime in Afghanistan and the new government in Pakistan, to improve border management and bilateral trade.

All the stakeholders in conversation with The Express Tribune emphasized the importance of cooperative measures, effective border management and a conducive trade environment for reviving the Pakistan-Afghanistan trade relationship and mitigating economic losses.

Published in The Express Tribune, February 23^rd2024.

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