Exploring Trade, Transit Challenges and Opportunities in the Afghanistan-Pakistan Trade Corridor: A Comprehensive Analysis

Abstract

Background: Afghanistan’s  trade  with  neighboring  countries,  especially  Pakistan,  is  vital  due  to  its  landlocked  geography.  The  Afghanistan-Pakistan  trade  corridor  faces  challenges  like  poor  infrastructure,  security  issues,  and  bureaucratic  hurdles.  However,  regional  initiatives  such  as  CPEC  (China–Pakistan Economic Corridor) present  opportunities  to  strengthen  bilateral  trade  and  economic  cooperation.  Afghanistan  is  a  landlocked  country  and  Pakistan  is  the  most  important  partner  because  it  provides  the  shortest  and  most  established  access  to  seaports.  Contrast  Routes  through  Iran  and  Turkmenistan  Faces  Higher  Costs,  Sanctions-Related  Risks,  and  Weaker  Logistics  Networks  Making  They  Less  Reliable.
Purpose:  To  examine  the  trade  and  transit  dynamics  between  Afghanistan  and  Pakistan  by  identifying  key  challenges  and  opportunities  in  their  trade  corridor,  with  the  aim  of  providing  policy  recommendations  to  enhance  bilateral  trade  and  regional  cooperation.  
Design/Methodology/Approach:  This  study  uses  a  mixed-methods  approach,  combining  both  quantitative  and  qualitative  data.  Quantitative  analysis  focuses  on  trade  volumes,  infrastructure,  and  policy  impacts,  while  qualitative  insights  are  drawn  from  A  total  of  15  interviews  were  conducted,  comprising  five  policymakers,  five  traders,  and  five  experts.  This  comprehensive  approach  allows  for  a  deeper  understanding  of  the  factors  affecting  the  Afghanistan-Pakistan  trade  corridor.
Findings/Results:  The  study  finds  that  improved  infrastructure  boosts  trade  efficiency,  while  security  concerns  and  bureaucratic  barriers  significantly  hinder  it.  It  also  highlights  that  regional  initiatives  like  CPEC  offer  promising  opportunities  to  enhance  Afghanistan-Pakistan  trade  relations.
Conclusion:  The  study  concludes  that  addressing  infrastructure  gaps,  security  issues,  and  administrative  inefficiencies  is  essential  for  improving  trade  between  Afghanistan  and  Pakistan.  Strengthening  regional  cooperation  and  implementing  targeted  policy  reforms  can  lead  to  a  more  stable  and  mutually  beneficial  trade  relationship.
Originality/value  (State  of  the  art):  Uses  both  quantitative  and  qualitative  methods  to  make  policy  recommendations  for  improving  Afghanistan-Pakistan  trade.  Its  Newness  By  Showing  Why  Pakistan  is  More  Important  For  Afghanistan  Trade  Than  Other  Neighboring  Countries.  Additionally,  it  integrates  policies  for  infrastructure,  political  stability,  and  trade  facilitation  into  one  framework,  providing  fresh  insights  for  policymakers.

Keywords:  Afghanistan-Pakistan  trade  relations,  China-Pakistan  Economic  Corridor  (CPEC), regional  economic  cooperation,  infrastructure  challenges,  trade  facilitation