Pak-Afghan bilateral trade hits alarming low

WEB DESK: In a recent development, new data has illuminated a substantial setback in Pakistan-Afghan bilateral trade.

Reports indicate a significant 43 per cent year-on-year decline in September, painting a concerning picture of the trade relationship between the two nations.

This decline was part of a broader trend, with trade between the nations decreasing by 9 per cent compared to August, indicating a worrying trajectory in their economic ties.

The decline in exports to Afghanistan played a pivotal role in this overall decrease, experiencing a sharp 26 per cent drop on an annual basis last month.

On a monthly scale, the decrease stood at 14 per cent, posing significant challenges for traders and businesses engaged in cross-border commerce.

Imports from Afghanistan also faced a downturn, plummeting by 55 per cent on an annual basis in September. This decline continued on a monthly basis, with a noted decrease of 3 per cent, intensifying the strain on the trade relationship.

In terms of monetary figures, Pak-Afghan bilateral trade for September contracted significantly, dwindling to $122.7 million.

The export volume from Pakistan to Afghanistan during this period amounted to $65.7 million, underscoring the challenges faced by Pakistani businesses in maintaining their market presence across the border.

Read more: Cheapest used motorcycles available for less than Rs50,000 in Pakistan

Simultaneously, imports from Afghanistan to Pakistan were reported at $5.69 million during the same period, highlighting a notable decrease in cross-border commercial activities.

The reasons behind this sharp decline in bilateral trade are multifaceted.

Economic experts speculate that factors such as geopolitical tensions, logistical challenges, and the broader economic climate might be contributing to this challenging situation.

The situation calls for a closer examination of these factors and collaborative efforts between the two nations to address the issues at hand and bolster their trade relationship.