ISLAMABAD – The Afghan Transit Trade has witnessed a significant decline of 84 percent, dropping to $191 million during the first two months of the current fiscal year from $1.223 billion in the same period last year. This decrease is primarily attributed to Pakistan’s anti-smuggling efforts and import restrictions.
Data for Afghan Transit Trade during July-August FY 2024-25 reveals a marked reduction compared to the same months in the previous fiscal year, an official source told The Nation.
Forward cargo, which refers to goods imported into Afghanistan through Pakistan, dropped by 83 percent, from $1,126.14 million in 2023-24 to just $187.16 million in 2024-25. Reverse cargo, which includes goods exported from Afghanistan, saw an even sharper decrease of 96 percent, falling from $96.67 million to $3.91 million, the source added. Overall, the total transit trade decreased by 84 percent from $1,222.81 million during July-August FY 2023-24 to $191.07 million during the first two months (July-August) of the ongoing fiscal year.
In FY 2023-24, the Afghan Transit Trade recorded a significant decline of 59, dropping from $7.095 billion in 2022-23 to $2.887 billion, mainly due to the anti-smuggling drive and import restrictions by Pakistan.
The Afghan Transit Trade from July 2022-23 to June 2023-24 shows a 64 percent decline in forward cargo (imports), decreasing from $6.701 billion to $2.399 billion. In contrast, reverse cargo (exports) increased by 24 percent, rising from $394 million to $488 million. Overall, total transit trade fell by 59 percent, dropping from $7.095 billion to $2.887 billion during this period.
The bilateral trade between Pakistan and Afghanistan was declined by 12 percent during FY 2023-24, primarily due to 40 percent decrease in imports of Afghan products. Pakistan’s exports to Afghanistan have experienced a steady increase; whereas, the imports have witnessed a significant decline from Afghanistan during FY 2023-24. There was 12 percent increase in Pakistan’s exports to Afghanistan from July 2023 to 2024. However, a significant decrease of 40 percent in Pakistan’s imports from Afghanistan had occurred during the period under review. Consequently, the total bilateral trade between the two countries had decreased by 13 percent during July 2023 to June 2024 period. During the FY 2023-24, the value of Pakistan’s exports to Afghanistan stood at $59.11 million. In the subsequent FY 2024-25, the exports from Pakistan to Afghanistan witnessed a robust increase of 75 percent, reaching a value of $103.52 million. On the imports side, the data shows that during the FY 2023-24, the value of Pakistan’s imports from Afghanistan amounted to $40.87 million. However, in the FY 2024-25, this figure declined by 8 percent to $37.67 million. The overall bilateral trade volume between Pakistan and Afghanistan grew in a positive trajectory, expanding by 41 percent from $99.98 million in 2023-24 to $141.18 million in the FY 2024-25. These developments indicate a notable improvement in the economic and trade relationship between the two neighbouring countries over the past year. However, in the month of July 2024, the overall bilateral trade volume between Pakistan and Afghanistan stood at $141.18 million in July 2024, marking a 41 percent YoY expansion from the $99.98 million recorded in July 2023. This positive trend is further reinforced by the 45 percent MoM growth, up from $97.43 million in June 2024. In July 2024, Pakistan’s exports to Afghanistan reached $103.52 million, reflecting a robust 75 percent increase compared to July 2023, when the exports stood at $59.11 million.
This significant YoY growth indicates a strengthening of Pakistan’s trade position in the Afghan market. On a MoM basis, Pakistan’s exports to Afghanistan also witnessed a healthy 38 percent expansion, rising from $74.97 million in June 2024 to $103.52 million in July 2024. Pakistan imported goods worth $37.67 million from Afghanistan in July 2024, registering 8 percent decline compared to the $40.87 million recorded in the same month of the previous year. However, on a MoM basis, Pakistan’s imports from Afghanistan grew by a substantial 68 percent, increasing from $22.46 million in June 2024 to $37.67 million in July 2024.
