Visas to truck drivers will boost trade with Kabul

Answering a question, the minister said that there was also a demand to allow Afghan trucks to cross the Wagah border. He said due to political tensions with India it is not possible. “We will consider this when things return to normal with India”, the minister remarked.

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The minister further said that trade with Saarc countries will also be taken into consideration after improving the situation with India. Pakistan has already turned into a net importer from Afghanistan since the Taliban took control of Kabul in August 2021.

During the period, Pakistan’s exports to Afghanistan also saw a deeper drop due to the non-availability of tradable currency through banking channels. Afghanistan was the third largest export destination for Pakistani products, but the trend changed in the past couple of years.

Pakistan’s exports to Afghanistan fell by30 per cent to $717.53 million in 2021-22 from $1.018bn in 2020-21. Since Aug 15, 2021, when the Taliban took over and declared their rule over Afghanistan, Islamabad has offered Kabul — among other humanitarian assistance — waivers of duty and taxes on fresh and dried fruits, vegetables and several other products.

As a result of this decision, the import of commodities from Afghanistan posted an unprecedented increase. Pakistan’s trade surplus with Afghanistan turned into a deficit.

The imports from Afghanistan reached $801.28m in FY22 compared to $583.59m in the preceding year, showing an increase of 37pc.

In the year 2019-20, imports from Afghanistan were just $470.9m. The data showed that the massive imports from Afghanistan led to dollar outflows and cause undue pressure on the rupee. Moreover, the smuggling of dollars is believed to be another factor for continuing trade in the greenbacks.