KABUL (SW) – The World Bank has reported that Afghanistan’s exports in the first eight months of 2024 have decreased by 14% compared to the same period in 2023, due to various reasons, particularly the increase in taxes on Afghan agricultural products imposed by Pakistan.
The report indicates that Afghanistan’s exports from January 2024 to September 2024 amounted to $92.5 million. It also notes that issues related to the transportation of goods between the two countries have caused an 8% reduction in Afghanistan’s food exports to Pakistan and more than a 6% decrease in exports to India.
Naqibullah Safi, the executive director of the Pakistan-Afghanistan Joint Chamber of Commerce, also confirmed the report, stating that changes in Pakistan’s trade policies towards Afghanistan have reduced Afghanistan’s exports to this country and, by extension, to other countries.
He adds: “Tariffs on fresh fruits and vegetables from Afghanistan have increased, and taxes have been imposed on them; compared to previous years, exports have decreased. There were also other transportation issues, like road closures at Dand Pathan and the Ghulam Khan crossings and the blocked roads. These problems led to a decline in exports.”
Safi, however, emphasized that the Islamic Emirate, recognizing the challenges, has considered alternative trade routes for merchants this year, such as exports through Central Asia to Russia and via Iran to other countries.
Afghan traders also complained about the decline in exports and the increasing challenges that hinder their trade this year, saying this situation has discouraged them from their business activities.
Khalid, a businessman, says that the problems in exports have caused significant losses. He adds: “This year, we suffered a huge loss from Pakistan; we lost $100,000 this year. When the roads are blocked for two months, our products spoil. If last year the problem was 50%, this year it has increased to over 80%.”
Economic experts say that both Pakistan and Afghanistan must find a sustainable solution to this issue.
Eraj Faqiri, an economic expert, said, “We must strive to create positive conditions for exports; if there are challenges in one route, alternative routes should be considered.”
Although the Ministry of Industry and Commerce of the Islamic Emirate has not recently commented on the reduction in Afghanistan’s exports, it had previously stated that in the first five months of the current year, Afghanistan’s exports to Pakistan had decreased by 10%. The ministry had attributed the main reason for the decline to the failure to adhere to trade agreements between the two countries.
