ISLAMABAD: Pakistan’s exports to Afghanistan increased by 20 percent in the last fiscal year, said the prime minister’s adviser on trade and commerce Abdul Razak Dawood on Saturday.
As a landlocked country, Afghanistan massively depends on its neighbors for trade to strengthen its economy.
Even after 20 percent increase, however, Pakistan’s exports to Afghanistan reached $1.02 billion in FY21 from $851 million a year before.
Officials say the two countries can further enhance the trade potential which has so far been held back by the region’s complex security situation.
Dawood also noted in a Twitter post that Pakistan and Afghanistan were in the process of negotiating a preferential trade agreement which was likely to further increase commercial activities between them.
Regional trade & connectivity is an important pillar of our policy. MOC is pleased to announce that our exports to Afghanistan have made significant recovery. During FY’21, our exports increased by 20% to $ 1.02 billion from $ 851 million in previous FY.
— Abdul Razak Dawood (@razak_dawood) July 3, 2021
Pakistan has put a lot of emphasis on regional connectivity while working with its closest ally, China, to develop an economic corridor connecting its southwestern deep-sea port of Gwadar with the Chinese autonomous region of Xinjiang.
The $62 billion project is usually described as a “game changer” for Pakistan and is expected to alter the region’s economic geography.
However, Pakistan’s plan to connect Gwadar with Central Asian markets will not only depend on normalization of its relations with Afghanistan but also how the situation unfolds in the war-battered country after the withdrawal of the international forces.
Pakistani government has said it wants enduring peace and stability in its northwestern neighborhood since any volatility in Afghanistan is not likely to serve its economic interest.
