PESHAWAR: The Pak-Afghan trade reduced steeply because of the ongoing Afghanistan crisis and the Taliban’s control of Kabul, incurring huge loss to traders and exporters.
Shahid Hussain, former senior vice president of Sarhad Chambar of Commerce and Industry (SCCI), said that in the current situation in Afghanistan, the bilateral trade is on its lowest level and all the trading goods are laying in warehouses due to closures of the trading routes. Hussain said that there is uncertainty and fear that the trading goods will be plundered in Afghanistan due to which the traders are not taking any risk of transporting goods.
“The exporters cannot take risks as at present there is no rule of law,” Hussain said. He said that until the new cabinet of the Taliban or the interim government arrives, businessmen will never take the risk of sinking their capital,” Hussain said. The trader said that due to the current tense situation, the Afghani currency is also on free fall. He informed that the value of the Afghan currency has fallen by 25% in a week, incurring loss to the traders.
The Pak-Afghan traders have always complained of lack of facilities and conducive political environment for trade. They are asking for modern goods clearing system, separating trade from politics. They traders said that due to the inclement conditions, often hundreds of trucks loaded with goods stand on the road several days. Moreover, due to the current conditions, the drivers are also not ready to transport goods to Afghanistan as after trip to Afghanistan, they are suffer from severe mental anguish.
Despite the repeated commitments of Pakistan and Afghan political leadership to enhance the trade, it is on decline. Official data shows that during 10 years from 2002 to 2012, volume of Pak-Afghan trade was $33bn but with steady decline, trade volume reduced to $1.37bn annually and in 2020 it decline further to $369mn. Similarly, Pakistan has also failed to enhance its trade with central Asian republics because of the hurdles on border crossings with Afghanistan.
Husain said, “Since there are no to deal in Afghan currency and the currency has no buyers which is causing difficulties to the traders.”