Pakistan in difficult spot to cater relations with Afghanistan as bilateral trade dwindles

Islamabad, May 11: Exports from Pakistan to Afghanistan have declined in the current fiscal year, which is depriving Islamabad of a major market for its products and dwindling trade with its neighbour. This has put Pakistan in a difficult spot in its relation with Afghanistan.

 

 

 

 

Pakistan's exports to Afghanistan fell 5.5 per cent from USD 790 million to USD 746.3 million during the first nine months of the current fiscal year, reported Pakistani media citing the State Bank of Pakistan (SBP). It is being believed among the business class of Pakistan that the declining trend is tantamount to squandering a great opportunity, which is costing businesses and the country greatly. The issues to Pakistan-Afghanistan trade are suffering from non-tariff barriers, apathetic bureaucracy, poor infrastructure and volatile geopolitics.

 

 

 

 

According to Engineer Manzoor Elahi, Senior President of the Sarhad Chamber of Commerce and Industry (SCCI) who shared his views with Pakistani media, Pakistan's annual exports to Afghanistan have tumbled from USD 2 billion a couple of years ago to USD 700 million. Elahi said that Afghanistan is now turning away from the Pakistani market as the main source, turning to India, Iran and its Central Asian neighbours for its trade needs. As a result, exports of cement and iron products from Pakistan have been considerably reduced.

 

He said, "Iran is unable to trade with other countries due to American sanctions. But in the case of Afghanistan, it is not deterred by any restrictions. Pakistan used to export up to 50,000 tonnes of cement and 100,000 iron bars until a couple of years back, but not anymore." He also highlighted the lack of understanding and urgency in the officialdom to fast-track the resolution of trade issues. There was less enthusiasm for fully utilising the potential of Pak-Afghan trade, he opined.

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