Government has decided to keep Torkham Border open round-the-clock six days a week to boost bilateral trade with Afghanistan. All goods bearing trucks shall be allowed to pass subject to observing the standard operating procedures, pertaining to the prevailing novel coronavirus pandemic. Increase in the quantum of bilateral trade through land routes with Afghanistan and other friendly neighbouring countries will help offset to some extent the once again soaring current account deficit, which had showed decline during July-March 2019-20. In the month of March deficit in merchandise trade was $9 million but it rose to $572 billion in April due to suspension of shipments via sea routes, tells SBP report. Textile exports have dropped by 65 percent to $404 million as compared with the shipments worth $1,138 million in the same month last year.
Afghanistan has been a booming market for exports from Pakistan, consisting of both value added items and food commodities. The balance of trade always remained surplus in favour of Pakistan. Composition of exports included cement, steel, plastic goods, textiles, pharmaceuticals, surgical goods, wheat flour, rice, sugar, meat, poultry, fruits and vegetables. Exports to Afghanistan were at halt from the past two months as borders have been sealed as an inevitable measure taken for containing coronavirus pandemic. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Anjum Nisar had demanded lifting of ban on shipment of exports from Pakistan to Afghanistan through the three trade routes of Torkham and Kharlachi in Khyber Pukhtunkhwa and Chaman in Baluchistan. The exporters had paid advance income tax and export development fund charges.
Exports to Afghanistan had witnessed boom during 2002-07 because federal government was keen to use bilateral trade as an effective tool of economic diplomacy, making it a cardinal principle of Afghan Policy. Bilateral trade started declining, hitting exports from Pakistan since 2008.
Afghanistan had remained the fourth largest destination of exports from Pakistan during 2002-07 with exports valuing $2.3 billion. Pakistan’s exports of wheat, rice, sugar and cement catered to 90 percent of market in Afghanistan. In addition, surgical instruments, soap, dry skimmed milk and footwear were also in great demand. But from 2013 and onwards, exports started plummeting. The quantum of exports fell to $1.4 billion in 2014 and to $1.2 billion in 2017.
