Trade and Transit Relatioship Between Afghanistan and Pakistan Are Improving

Date: 2020-10-15

The trade and transit relations between Afghanistan and Pakistan were altered by the COVID-19 in both countries. The economic hardship has been felt stronger in Afghanistan, derived from being a landlocked country. However, both countries experienced reduced economic growth during the COVID-19 pandemic and post COVID-19 recovery will be a slow and cumbersome if Trade and Transit doesn’t improve between them. In order to resolve trade and transit problems between Afghanistan and Pakistan, Harakat- Afghanistan Investment Climate Facility Organization (H- AICFO) with the financial support of United States Agency for International Development (USAID), organized a high level Public Private Dialogue (PPD) on challenges, opportunities and proposed solutions in Afg-Pak trade and transit on August 29, 2020 at Kabul Serena Hotel. The event was attended by Mr. Mohammad Umar Daudzai, President’s Special Envoy in Pakistan Affairs and senior private sector representatives including Board Members of Afghanistan Chamber of Commerce and Investment, the Pakistan- Afghanistan Joint Chamber of Commerce and Industries, and other business leaders representing all regions that have trade flow with Pakistan. Mr. Daudzai proposed the establishment of a Private Sector Advisory Committee (PSAC) to be integral part of the future trade and transit negotiations with Pakistan. The PSAC, chaired by Mr. Daudzai, and H.E Nisar Ahmad Ghoryani, Acting Minister of Industry and Commerce, is composed of representatives of all Chambers. Mr. Daudzai and H.E Minister Ghoryani had the first meeting with the PSAC on September 19 at the Presidential Palace. The main recommendation was to collaborate more closely, and base the negotiations with Pakistan on technical analysis to get a fair deal to safeguard the interests of Afghanistan and to address the issues that Afghan traders have been facing for the last few years at Karachi port and at other border posts with Pakistan.