Aaj English TV

Wednesday, July 24, 2024  
18 Muharram 1446  

How Afghan transit trade deeply impacts Pakistan’s economy

This surge has severely affected the small and medium industries of Pakistan
After the increase in imports, a notable decline emerged in Pakistan’s export. Photo Reuters
After the increase in imports, a notable decline emerged in Pakistan’s export. Photo Reuters

The imports under the Pakistan-Afghan transit trade have jumped by 67 per cent but officials claim that reported figures of imports and actual prices have major differences.

According to the reports in the eight months of FY2022-23, a significant jump of 67 per cent has been seen in the trade which reached $6.71 billion, whereas it was $4 billion in the corresponding year.

However, Afghan officials claimed that Pakistan’s customs officials are misinforming about the prices of items.

After the increase in imports, a notable decline emerged in Pakistan’s export included electronic items, tyres, tea, machinery and vegetables and fruit by 48 per cent, 62 per cent, 42 per cent, and 34 per cent respectively.

Import of fibres, electric items, appliances, and tyre tubes from the neighbourly country have risen by 35 per cent, 72 per cent, 80 per cent, and 59 per cent, respectively.

This surge has severely affected small and medium industries of Pakistan and officials expressed need of change in the rules and laws of Pak-Afghan transit in accordance with the international trade system.

They added that a tracking record created with the fake leading of bills triggers complications in the system.

According to a Pakistan Bureau of Statistics report, Pakistan’s economy bears a loss of $3 billion yearly in illegal trade, as Afghan traders create technical fault in tracker systems installed in the tracks.

The smugglers in both countries are allegedly using transit trade system to exchange drugs and smuggle other items.

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Pakistan

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Pakistan Afghanistan relations

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