KABUL (SW) – The de-facto Ministry of Industry and Commerce (MoIC) has reported a 10% decrease in Afghanistan’s exports over the earliest five months of the current solar year.
According to the ministry, Afghanistan’s total trade volume during this period was valued at $4.6 billion, with imports amounting to approximately $4.09 billion and exports totaling $509 million.
Akhundzada Abdul Salam Jawad, spokesperson for MoIC, told Salam Watandar that the primary cause of the reduced exports is Pakistan’s non-compliance with bilateral trade agreements.
He explained, “During the first five months of this year, Afghanistan’s exports were around $568 million, and imports were about $3.21 billion, reflecting a 10% decrease in exports compared to the previous year. The main reason for this decline is Pakistan’s failure to adhere to trade agreements between the two countries.”
The ministry’s data reveals that the largest share of Afghanistan’s exports during this period went to Pakistan, India, the United Arab Emirates, Kazakhstan, Uzbekistan, Iran, Turkey, China, Iraq, Kyrgyzstan, the United States, Saudi Arabia, Spain, the Netherlands, Russia, Germany, Belgium, the United Kingdom, and Canada.
This year, Afghanistan has primarily exported cotton, asafoetida seeds, coal, raisins, non-alcoholic beverages, saffron, mineral stones, lead ingots, fruit juices, almonds, onions, other medicinal plants, black cumin, and dried figs.
Officials from the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) report that trade between the two countries is being hindered by political and security issues, posing ongoing challenges to future trade relations.
Naqibullah Safi, Head of the joint chamber, said, “Political and internal issues in Pakistan sometimes block trade routes, which has had a long-term negative impact on bilateral trade. For example, in 2014, we had approximately $3 billion in trade with Pakistan, but this figure has been declining year by year.”
The recent disruption in trade is exacerbated by tensions in Pakistan, where trucks carrying Afghan export products have faced difficulties due to ethnic conflicts since 20 days.
Safi added, “We request that these issues be resolved. For instance, the Koko Khel tribe in Pakistan has blocked the trade route. This is not just a regular road closure but a blockage affecting trade between the two countries.”
Economic experts suggest that to address the decline in exports, Afghanistan should focus on strengthening domestic production, finding alternative export routes, and resolving existing challenges along the Pakistani route.
Economic expert Abdul Nasir Rashtia commented, ” … if we don’t have products to export, alternative routes won’t help. For instance, our main export products are agricultural goods, and we have yet to develop cold storage facilities to manage these products.”
Currently, Afghanistan remains heavily reliant on trade routes through Pakistan, and efforts to utilize alternative routes have yet to yield significant results.
