Trade with Afghanistan

THE prospects for resumption of Pakistan-Afghanistan trade seem bleak as Islamabad has taken a firm decision to condition reopening of borders to verifiable steps to be taken by Kabul, which the latter is in no mood to initiate.

According to reports, Pakistan has decided to keep the border crossing closed for all kinds of economic and commercial activities until the Afghan Taliban take concrete action against members of the terrorist outfit Tehreek-e-Taliban Pakistan (TTP) presently enjoying safe havens in Afghanistan and frequently indulging in terrorist activities in Pakistan. The border closure, now stretching beyond a month, has left thousands of trucks and containers stranded on both sides, crippling bilateral trade and the regional transit route.

The suspension of trade is, no doubt, harming the economic interests of both countries because traders have been deprived of the benefits of proximity and alternative markets will add much to the cost of doing business besides other issues like security and damage to perishable items. Pakistan has a clear policy of forging economic ties with neighbouring and regional countries and this policy was more evident in the case of trade with Afghanistan. Pakistan demonstrated liberal attitude in granting trade concessions to Afghanistan and put no restrictions on the transit trade despite the fact that most of the goods imported under the garb of ATT ended up in Pakistani markets, depriving the country of taxes and duties that it might have received in case of formal import of such items. However, it was forced to use trade as a strategic tool in view of the stubborn attitude of the Taliban Regime, which is not ready to address genuine security concerns of Pakistan. The standoff is expected to continue irrespective of its economic costs as the country has decided to make no compromises over security of its people in the backdrop of unending attacks from across the Durand Line. Pakistan seems to be no longer ready to make unilateral concessions to Afghanistan including trade and movement of people besides a steadfast policy to take the ongoing process of repatriation of illegal Afghans to their homeland. Afghanistan needs to understand new ground realities and base its ties with Pakistan on the premise of good neighbourly relations.

 

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