Pakistan-Afghanistan Trade Hits $2.17 Billion Mark
Published on 8.8.25
Pakistan-Afghanistan trade has rebounded to over USD 2.17 billion by 2024, signaling a potential revival in economic engagement. However, stringent visa policies and restricted border crossings continue to hinder commerce. Tariff reductions are important, but true trade facilitation demands improved ease of doing business, including the smooth movement of goods and individuals. The absence of a harmonized Transport and Documentation mechanism severely hinders efficient cross-border trade due to delays and inconsistent application of rules. To unlock the full potential of bilateral trade, Pakistan and Afghanistan must introduce standardized electronic data interchange systems, adopt TIR systems, and align protocols with international best practices. Tariff inconsistencies pose a significant obstacle, particularly affecting trade in perishables and essential goods. Frequent closures of key crossing points have disrupted trade flows, leading to massive losses on both sides. Sustainable economic cooperation demands a protocol-based approach to border management, where trade routes remain open with targeted controls in times of crisis. Establishing a joint border facilitation authority and a business-friendly visa regime can significantly enhance mutual trade prospects and human connectivity.