Afghanistan’s transit trade with Pakistan drops by 60%

KABUL (SW) – The Afghanistan Chamber of Commerce and Investment reports a 60% decline in the transit of commercial goods between Afghanistan and Pakistan this year due to ongoing challenges at commercial crossings.

Khan Jan Alokozai, deputy head of the chamber, said: “Our trade and transit with Pakistan are declining; transit has nearly halted by 60%. We are currently relying on the ports of Bandar Abbas and Chabahar. Our domestic trade with Pakistan, which was nearly $2 billion, has decreased to $1 billion last year due to restrictions, and this year it is expected to drop to $500 million. Iran is taking Pakistan’s place in the region.”

This comes in light of the announcement by Iranian officials on Monday, September 30, regarding an eightfold increase in the transit of goods to Afghanistan.

Mohammad Kouhgard, director of customs for South Khorasan in Iran, stated in an interview with the Iranian news agency IRNA that over 15,000 trucks of goods worth 671 million dollars have been transited from the Mahirud border to Afghanistan in the first six months of this year, representing an “eightfold increase compared to the same period last year”.

Some Afghan traders voice concerns over the challenges at transit crossings with Pakistan this year, reporting losses amounting to tens of millions of afghanis.

Rafiullah, a fresh fruit trader, said, “The Torkham crossing has been blocked for two months and we are facing difficulties.”

Salarzai, a dried fruit trader, also highlighted the dual challenges of road closures and high tariffs imposed by Pakistan, significantly impacting their businesses. He said: “The roads are frequently blocked, affecting our exports, which can reach up to $100 million in dried fruits.”

Despite ongoing efforts by the de-facto Ministry of Industry and Commerce to resolve trade and transit issues with Pakistan, the Afghanistan Chamber of Commerce and Investment indicates that these challenges persist. Officials from the chamber noted that, as a result, Iran has become an alternative route for Afghanistan’s transit, with annual trade exchanges exceeding $2 billion.

ENDS
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