Infostani Sources- During the last financial year, the Afghan trade corridor facilitated the import of goods worth approximately $7.03 billion Dollars into the country. This is a two-thirds increase in imports through the Afghan trade corridor over the last fiscal year. And most of them are goods that Islamabad did not buy from the global market due to the external payments crisis. Official data shows that the Afghan trade corridor imported goods worth $2.08 billion last fiscal year. With Pakistan importing $2.03 billion. These goods were not purchased from the global market due to the crisis.
According to official data, Afghanistan imported goods worth 7.3 billion dollars through Pakistan (through the trade corridor) during fiscal years 2022 and 2023. The Pakistani administration reports a significant drop in imports through Islamabad. Many goods were imported under the Afghan Trade Corridor Agreement and then smuggled back into Pakistan from Afghanistan. To curb illegal imports. The Islamabad government will impose a 10 percent processing fee on goods imported under the Afghan Transit Trade Agreement.
Trade Dynamics Between Afghanistan and Pakistan: Implications and Trends in Dollars
The decision, based on Customs Act powers, aims to prevent smuggling and collect regular taxes. Analysis of 20 Afghan imports reveals a decrease in imports from Pakistan in 2023. Kabul spent $3.3 billion on imports in 2022, increasing to $15.6 billion in 2023. According to the official data, there has been a 48% decrease in the Pakistani import of fabric synthetic. However, there has been a 35 percent increase in the import of fabric synthetic to Pakistan through the Afghan trade corridor.
Similarly, Pakistan’s import of electronic goods from the global market decreased by 62%, but Afghanistan saw a 72% increase. Pakistan reduced plastic goods imports by 34%, while Afghanistan boosted imports by 206% from the global market.
The increase in imports through the Afghan trade corridor into Afghanistan has had significant implications for both countries. During the last fiscal year. This corridor facilitated around $7.03 billion Dollars in imports, a significant two-thirds increase from the previous year. These imports were vital for addressing Afghanistan’s external payments crisis. Allowing the country to access essential goods that Islamabad didn’t obtain from the global market. In the previous fiscal year, Afghanistan imported $2.08 billion Dollars worth of goods through this corridor. While Pakistan imported $2.03 billion Dollars, all due to the crisis.
Changing Trade Dynamics and Concerns in Afghan-Pakistan Trade Relations
However, recent data indicates a noteworthy drop in imports through Islamabad, and there are concerns that some goods imported under the Afghan Trade Corridor Agreement have been illicitly funneled back into Pakistan from Afghanistan. To counter these illegal imports, the Islamabad government has taken the decision to impose a 10 percent processing fee on goods imported under the Afghan Transit Trade Agreement. This move, grounded in the Customs Act’s powers, aims to deter smuggling and ensure the collection of regular taxes.
Analyzing specific goods, the data reveals intriguing patterns. While there has been a 48% decrease in Pakistan’s import of synthetic fabric in 2023, Afghanistan has witnessed a 35 percent increase in the import of the same through the Afghan trade corridor. Similarly, Pakistan’s import of electronic goods from the global market decreased by 62%, but Afghanistan saw an impressive 72% increase. The contrast in these import trends underscores the evolving dynamics in trade between the two nations. Additionally, Pakistan’s reduced imports of plastic goods by 34% contrast with Afghanistan’s significant boost of 206% in imports from the global market. These changes highlight the complex interplay of economic factors and trade agreements in the region.
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