Deep, negative effects of Pak-Afghan transit trade on the country’s economy

RAWALPINDI Sep 13 (Online): Pak-Afghan transit trade is having deep and negative effects on the country’s economy.
Afghan transit trade has to work according to international laws for economic recovery of Pakistan.

According to the report, Afghanistan transit trade is one of the main causes of black economy in Pakistan.
Afghan authorities misrepresent the values of Afghan transit trade items to Pakistan Customs, resulting in significant discrepancies between the reported and actual value of the goods, which are then smuggled into Pakistan illegally.

According to the report, Afghan imports under transit trade increased by 67% to reach US$ 6.71 billion in February 2022-23 compared to US$ 4 billion last year. Electrical equipment, electronic equipment, tire tube, tea etc., these imports recorded an increase of 35%, 72%, 80% and 59% respectively.

According to the report, due to this huge increase in imports, Pakistan’s imports of these items decreased significantly, 48% in textile products made of synthetic filament, 62% in electronic equipment, 42% in tires and rubber, 51% in tea. %, 34% in machinery while 46% in vegetable and fruit imports.

Pakistan’s own small and medium scale industries are adversely affected by the Afghan transit trade and are having a negative impact on the Pakistani economy.