October 15, 2022

Pakistan and Afghanistan’s missed trade opportunities

topic:	Peace and Reconciliation
located:	Afghanistan, Pakistan
editor:	Shadi Khan Saif

The economic interdependence between Afghanistan and Pakistan has time and time again proven to be quite strong, but has been overshadowed by petty political drama to the detriment of the millions of citizens of both countries.

Pakistan’s economy was in shambles even before the recent devastating floods that have devastated the country’s food and cash crops, making matters even worse. What seems to be providing some relief is the affordable and easily accessible supply of vegetables and fruits from Afghanistan, its landlocked neighbour next door, which itself is reeling from decades of wars and destruction.

In this win-win trade, one country has met its objective of finding a market for its agriculture-based economy while the other has received food supply at a reasonable price.

And this scenario is just one of so many that could do wonders to alleviate poverty, bolster food security and promote the rights and liberties of both countries. 

Months before that, Pakistan’s ailing economy received a lifeline from Afghanistan in the form of an expedited supply of coal for power plants. Although this is not cause for celebration for the environment, it nevertheless shows that there is so much to gain for both countries if a mutual cooperation is pursued in an honest spirit instead of manipulating weaknesses and seeking advantages from each other’s miseries. Pakistan has a much greater responsibility and role to play as a bigger economy enjoying relative stability than Afghanistan.

Millions of children in both countries have similar needs - they have been paying the price of their leaders’ arrogant and self-serving policies centred around exploitation, lies and a disregard to justice. 

On the brink of an all-out bankruptcy as a state, Pakistan could revive its ailing economy by meeting its energy demands from its fuel-rich neighbours. Key energy transit projects such as the Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline project, remain in limbo mainly since the military-dominated government has preferred to maintain its force, disregarding the disadvantage it does to the general public. 

It has been this militarised and politicised mindset that has prevented Afghanistan from engaging in trade deals with India to meet its pressing needs. How is it justified for Pakistan to only allow Afghan transporters to cross thousands of miles to reach next door India to deliver goods and not allow them to load goods back for import to Afghanistan?

What would Pakistan get if Afghanistan reciprocated that for its exports to Central Asia? A lose-lose scenario.

A fair rule-based mechanism aimed at rigorously promoting regional trade and connectivity can do wonders not only for Pakistan, but for the entire region. It would unlock so many opportunities that are not conceivable in the current environment, in which the regional disputes of the past have stained potential amities and neighbourly trust. 

Image by Kamran Ch

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