Pak-Afghan Bilateral Trade: Impact on the Economy of Afghanistan

Abstract

Pak-Afghan relations entered a new phase of dilemma during the last few years particularly in the post-US withdrawal scenario. The return of Afghan Taliban to power in August 2021 was considered to be a sign of good omen for Pakistan but the guesses and predictions of the people showed the element of sensationalism and worsening of relations between the states. Security situation got worsened between the two countries to such an extent that the Pak-Afghan border had to be closed by the Pakistani Authorities and consequently trade and business between the two countries suffered a great set back. Trade is of utmost importance for both Afghanistan and Pakistan where the former can utilize the shortest routes to Pakistani market with great accessibility while the latter besides, having trade with Afghanistan, has also the opportunity to have direct access to the markets of the Central Asian Republics. As a result of suspension of trade with Pakistan, Afghanistan has also to make substitute arrangements of trade with the regional dynamics in an effort to achieve self-reliance and survival in the global politics. This article aims at exploring Pak-Afghan Bilateral Trade and its impact on the economy of Afghanistan.