Trade & Transit Cooperation with Afghanistan:
Research Report
Trade & Transit Cooperation with Afghanistan:: Results from a Firm-level survey from Pakistan
Vaqar Ahmed
Saad Shabbir
Copyright Date: Apr. 1, 2016
Published by: Sustainable Development Policy Institute
Pages: 26
OPEN ACCESS
https://www.jstor.org/stable/resrep02863
Table of Contents
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  1. Front Matter
    Front Matter (pp. [i]-[ii])
  2. Table of Contents
    Table of Contents (pp. 1-1)
  3. Abstract
    Abstract (pp. 2-2)
  4. 1. Introduction
    1. Introduction (pp. 2-5)

    Afghanistan’s exports of goods and services were recorded around USD 500 million whereas the imports rose from USD 3 billion in 2009 to USD 10.6 billion in 2014. The current account balance remained negative and decreased over the years. These statistics, however, do not account for the substantial informal trade between Afghanistan and Iran, and Afghanistan and Pakistan. Trade activity has been on the rise for the most part of the last decade. Pakistan remains the largest trading partner of Afghanistan with a share of 28 per cent followed by the United States, which has a share of 17.8 per...

  5. 2. Methodology
    2. Methodology (pp. 5-7)

    For this paper, we adopted a methodology that directly surveyed the business community about the above-mentioned issues affecting them and the specific reforms they would like to be put in place. Using a mix of desk review, qualitative and quantitative survey, this paper aims to:

    Explore perceptions regarding economic opportunities and major challenges in Afghanistan and their impact on Pakistan and other actors in Central Asia. The term ‘actors’ here is not limited to states or their institutions. Efforts of multilateral organizations and the private sector in the region were also explored.

    Review estimates from recent studies highlighting expected changes...

  6. 3. Survey Results and Findings
    3. Survey Results and Findings (pp. 8-19)

    Most respondents said that to realize the USD 5 billion target of bilateral trade between the two economies (as set by the two Ministries of Commerce), the share of manufactured products needs to increase.12 For this to happen, one needs to start by looking at how Pakistani firms compete in Afghanistan.

    Around 25 per cent of the revenues of firms sampled are from sales abroad. Given the energy crisis faced by the firms in Pakistan, annual turnover and exports have decreased. This is particularly the case for firms in Balochistan and Khyber Pakhtunkhwa provinces. Most respondents reported highly increasing costs...

  7. 4. Conclusion
    4. Conclusion (pp. 19-22)

    This paper discusses various issues that require negotiation between Afghan and Pakistani trade officials including: customs clearance process; insurance of transport vehicles, safety of containers and consignments; tracking and monitoring of consignments; role of SROs hurting bilateral trade; credit facility for traders; currency swaps; sluggish progress on port, road and rail projects; high costs of air cargo; and lack of banking channels. In order to strengthen the Afghanistan-Pakistan economic cooperation, this concluding section points towards increased efforts required to strengthen the institutional framework of trade diplomacy.

    Pakistan has to have a very cogent Afghan policy and this policy must have...

  8. 5. References
    5. References (pp. 22-24)