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    Money Economics Afghanistan

    Trade tensions escalate as Afghan-Pakistan relations sour amid downturn

    Trade tensions escalate as Afghan-Pakistan relations sour amid downturn

    Trade between Afghanistan and Pakistan has witnessed a substantial downturn, exacerbating existing tensions between the two neighboring nations. 

    The latest data released by the Pakistani Central Bank reveals a decrease in imports of Afghan goods, plunging by nearly 60% from $13.5bn to $5.4bn, in the period spanning from July 2023 to February 2024 compared to the same timeframe in the previous year. Similarly, exports to Afghanistan experienced a decline of 7.7%, dropping from $346.5mn to $319.9mn.

    Photo: Afghan goods imports to Pakistan plummet by nearly 60%
    Source: Sputnik

     

    Contradictory figures have emerged from the Taliban, who now control Afghanistan. Abdul-Salam Javad, an official representative of the Ministry of Trade, asserted that Afghan goods' sales to Pakistan plummeted by 24% to $926mn over the past year. In contrast, imports from Pakistan surged by 30% to $1.517bn, culminating in a total trade volume of $2.443bn.

    This trade imbalance underscores the strained relationship between the two nations, with each side presenting differing narratives regarding the extent of the decline. The discord is further aggravated by the ongoing closure of customs checkpoints and escalating diplomatic tensions.

    Iran has emerged as a pivotal player amid the trade turmoil, seizing the opportunity to bolster its economic ties with Afghanistan. The Iranian market has now become the primary source of imports for Afghanistan, a strategic shift reflecting Tehran's economic ambitions in the region.

    The deteriorating trade relations between Afghanistan and Pakistan raise concerns about the broader implications for regional stability and economic cooperation. 

     

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    18.04.2024, 14:47   Comments (0)   913
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