Bilateral Trade

Commercial Section of this Embassy is entrusted to increase the foreign exchange earnings of Pakistan through promoting and facilitating the expansion of Pakistan's exports to Afghanistan.

Counsellor (Trade & Investment) principal responsibilities are therefore:

1. To enhance Pakistan’s reputation as a reliable trading partner.
2. To develop favorable commercial relations between trading
   enterprises in Pakistan and Afghanistan.
3. To ensure that relevant Governmental bodies, commercial organizations and the Pakistani export community have up to date knowledge of trading conditions and export prospects and opportunities in Afghanistan.

Trade Officer will not only contribute to economic and trade related objectives, but also assist in strengthening of Pakistan's general bilateral relations with Afghanistan.

Overview of bilateral trade between Afghanistan & Pakistan

Trade in Goods

• Pakistan is the largest trade (exports +imports) partner of Afghanistan
• Pakistan is the largest export destination of Afghanistan
• Pakistan is the 3^rd largest import partner of Afghanistan
• Torkham, Chaman, Ghulam Khan, Kharlachy, Badini and Angor Ada serve as major border crossing points for Pak-Afghan bilateral trade

(Value in Million US$)

Years	Exports	Imports	Total	Balance
2017-18	1300.33	450.05	1750.38	850.28
2018-19	1270.41	557.70	1828.11	712.71
2019-20	857.49	472.53	1330.02	384.96
2020-21	1018.53	577.49	1596.02	441.04
2021-22	867.12	801.09	1,668.21	66.03
2022-23	953.99	892.84	1846.83	61.15
2023-24	1,064.84	538.60	1603.44	526.24

Source: FBR

Major Exports in 2023-24

Rice, Fruits & Vegetables, Pharmaceutical products, Food preparations, Cement, Wood and articles, Plastics and articles thereof, Motorcycles, Tractors, Sugar confectionery, preparations, Rubber and articles thereof,

Major Imports in 2023-24

Onions, Tomatoes, Seeds, Grapes, Dried apricots, Oilcake, Coal, Cotton, Lentils, Cucumbers, Apples, Unwrought lead,

Trade in Services

(US$ Mln)

Years	Exports	Imports	Total	Balance
2017-18	18.82	17.89	36.81	1.04
2018-19	20.42	15.87	36.29	4.55
2019-20	20.41	15.91	36.32	4.50
2020-21	12.9	12.2	25.1	0.7
2021-22	4.47	12.9	17.4	-8.43
2022-23	2.67	1.39	4.06	1.28
2023-24 (Jul-May)	0.55	1.76	2.31	-1.21

Source: SBP

Major Export services in 2023-24

Business services, telecommunication services and government services, Maintenance and repair services, transport and travel services.

Major import Services in 2023-24

Government Goods and services, Transport services, Telecommunication Services and business services.

Pakistan Afghanistan Transit Trade

• Pakistan is the single largest transit trade and connectivity partner of Afghanistan
• Afghan border crossing points at Hairathan, Sher Khan Bandar, Turghundai and Akina serve as gateway to Central Asian Republics for Pakistan
• Pakistani ports of Karachi, Bin Qasim and Gawadar provides shortest and cost-effective access to Afghanistan transit trade and trade of CARs with rest of the world
• Wagha, Lahore and Sust, Gilgit Baltistan cater to Afghan exports to India and transit trade with China via land routes respectively
• Torkham, Chaman and Ghulam Khan serve as major border crossing points for Pak-Afghan transit trade

Pak-Afghan Transit Traffic

Years	Assessed Value in Million	TEU
2017-18	3,074	79,805
2018-19	5,234	121,577
2019-20	5,403	129,072
2020-21	4,407	116,997
2021-22	4,016	101,701
2022-23	6,701	153,480
2023-24	2,399	73,974

 

Prospects & Way forward

• Important bilateral trade and economic engagements platforms are APTTCA, APPAPS, Pak-Afghan Parliamentary Friendship Group (PFG), JEC and PAJCCI
• APTTA 2010 has been extended till 11 May 2022
• Technical Committees are engaged to negotiate the Revision of APTTA
• To uplift the economic and social wellbeing of the people living on both sides of Pak-Afghan border, curtail smuggling and promote local investment, Pakistan has proposed to setup 12 Joint Border Sustenance Markets (JBSMs) on Pak-Afghan border; two JBSMs, at Shaheedano Dand and Arandu, to be operationalized as pilot project.
• Pakistan and Afghanistan are negotiating a bilateral Preferential Trade Agreement (PTA)
• Pakistan has offered to enter into a bilateral MoU on both investment and trade dispute resolution to Afghanistan
• Pakistan has started issuing upto 5 years multiple entries business/investment visa to Afghan traders, businessmen and investors upon completion of the required formalities.
• TAD based free movement of trucks has been agreed w.e.f. 21-03-2022.
• Proposal of Barter Trade agreement is under consideration.

Strategic Trade Policy Framework (STPF) 2020-25

Ministry of Commerce has prepared the Strategic Trade Policy Framework (STPF) 2020-25 that aims to enhance export competitiveness of Pakistan through a framework of interventions having an impact across the value chains.

• Strategic Trade Policy Framework (STPF) 2020-25