negative effects of Pakistan-Afghan trade

Deep and negative effects of Pakistan-Afghan transit trade on the country’s economy

Rawalpindi: The Afghanistan transit trade is one of the leading causes of the black economy in Pakistan, the prices of Afghan transit trade items are misrepresented by Afghanistan. negative effects of Pakistan-Afghan trade According to the details, the Pakistan-Afghan transit trade is having a deep and negative impact on the country’s economy, The Afghanistan transit trade is one of the leading causes of the black economy in Pakistan.

Afghan authorities misrepresent the prices of Afghan transit trade items to Pakistan Customs, resulting in significant discrepancies between the reported and actual value of the goods, and the goods then entering Pakistan illegally.
Afghan imports under transit trade increased by 67%, reaching US$ 6.71 billion in February 2022-23, compared to US$ 4 billion last year. Includes tire tube, tee, etc.

Due to the large increase in imports, there was a significant decrease in the imports of goods in Pakistan, 48% in textile products made of synthetic filament, 62% in electronics, 42% in tires and rubber, 51% in tea, 34% in machinery, 34% in imports of fruits and vegetables. 46% decrease.

Pakistan’s own small and medium scale industries are badly affected by Afghan transit trade and are having an impact on the economy, so Afghan transit trade also needs time to conform to the international laws prevailing in the world for the economic recovery of Pakistan.

On the other hand, Karachi, Port Qasim and Gwadar are important points of access to international markets for Afghan goods. Trade between Pakistan and Afghanistan has increased by 12 percent since last fiscal year and mutual trade has increased from 1.668 billion dollars to 1.861 billion dollars. negative effects of Pakistan-Afghan trade.

Last fiscal year, Pakistan’s total exports to Afghanistan were 968.43 million dollars, while in the previous fiscal year, total exports were 867.03 million dollars, in the same supply, Pakistan’s imports from Afghanistan were 893 million dollars. Pakistan imports cotton for its power plants, along with coal imports, and Afghan traders evade customs duties by smuggling three-quarters of the goods.


According to the statistics agency, Pakistan loses 3 billion dollars annually due to illegal trade. The tracking system is affected by tampering with the tracking system installed on the container trucks of the Afghan businessman. sold, black market sales threaten the local industry. Drugs and other goods are smuggled through transit trade while fake bills of lading are increasing complications in keeping tracking records.

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