Pakistan-Afghan Transit Trade and its profound and negative effects on Pakistan

BusinessPakistan-Afghan Transit Trade and its profound and negative effects on Pakistan

Monitoring Desk: Afghanistan transit trade is one of the leading causes of the black economy in Pakistan, reports Pakistani media.

According to media reports, the Afghan Interim government misrepresents the prices of Afghan transit trade items with Pakistan Customs, resulting in significant differences between the reported and actual value of goods and then these items are smuggled back to Pakistan, hampering legal trade in the country.

Strangely, Afghanistan which has no significant urban market and is ruled by radical Islamists is importing huge consignments of cosmetics, beautification items, and women’s wears of Western style. Overall imports from Afghanistan have increased by 67% the value of which reached US$ 6.71 billion in February 2023 while last year these imports were 4 billion US dollars.

Afghan imports from Asia include synthetic fibers, electrical equipment, electronics, tire tubes, tea, etc

These imports recorded an increase of 35%, 72%, 80% and 59% respectively.

Due to this large increase in Afghan imports and their smuggling to Pakistan, imports of these commodities to Pakistan decreased significantly, 48% in textile products made of synthetic filament, 62% in electronic equipment, 42% in tires and rubber, 51% in tea, and machinery. 34% while vegetable and fruit imports

Pakistan’s own small and medium-scale industries are adversely affected by the Afghan transit trade and are having a negative impact on the Pakistani economy.

It is an important need of the hour to make the Afghan transit trade in accordance with the international laws prevailing in the world for the economic recovery of Pakistan.

Pakistan-Afghan Transit Trade

Pakistani small and medium-sized industries washed away due to heavy smuggling in the last 30 years and the trend is hampering import duties of over 65 percent per year to Pakistan but smuggling from Afghanistan and Iran remains unchecked due to reasons known only by the state institutions.

The recent crackdown on the smuggling of goods, edibles, and US$ to Afghanistan has again confirmed that Afghanistan enjoying throbbing business and trade has been feeding at the cost of Pakistan.

Central Desk
Central Desk
Agha Iqrar Haroon is a Pakistani research journalist and political analyst. founder of Dispatch News Desk and author of a book “How does Superclass Rule Nations? —A Case Study from Pakistan”.

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