Pakistan-Afghanistan Transit Trade: A Critical Analysis of the Decade 2010-2020

Abstract

Geo-economics plays an overwhelming role in the geo-politics of the international community. It plays a significant role in bringing the regional countries close to each other, potentially developing socio-economic relations and political stability in the region. Moreover, it has the potential to transform the lives of the people by providing numerous employment and business opportunities for the people. Similarly, Pakistan Afghanistan Transit trade offers immense opportunities to deepen the socio-cultural, economic, and political relations between the regional countries in general and Pakistan and Afghanistan in particular, which can improve peace, economic prosperity and political stability in the South Asian region. However, historically, the relations between Pakistan and Afghanistan have been tense due to territorial disputes, cross border infiltration, terrorism and smuggling. Resultantly, due to political reasons, the Pak-Afghan border often remained closed during between 2010 which affected the flow of Pak-Afghan transit trade across the border. Due to the border closure, the transit traders gave up their occupation so their business came to a halt which culminates into the spread of terrorism, decline in cooperation between the states, and creates insecurity in the region. This study explores the impacts of Pakistan-Afghanistan Transit Trade on regional peace and development during the decade 2010-20. Furthermore, this study also explores the impediments in Pak-Afghan transit trade during 2010-20. In addition to this, based on the necessity of Pak-Afghan Transit Trade and developmental projects by Pakistan, this study also explores the prospects of the Pak-Afghan Transit trade in future. This research uses both secondary and primary data. The total number of interviews is twelve which are conducted with different participants from Sarhad Chamber of Commerce, Peshawar chamber of small traders, officials from regional transit trade office Peshawar, academia and various transit traders.