Afghanistan stunned Pakistan, what happened overnight that billions of rupees were lost?

The impact of the ongoing diplomatic tensions between Pakistan and Afghanistan is now becoming visible on the ground. The soured relations between the two neighboring countries have severely impacted their economies. 

Recent data shows that trade between the two countries has declined significantly. This decline is no small thing; trade levels have plummeted by 53 percent. 

Where once the lines of trucks and the movement of goods were commonplace, there is now silence. This situation has particularly disturbed Pakistani exporters, who are suffering significant financial losses every month.

Billions of rupees were lost in just a few months.

The total trade volume between the two countries once stood at $2.61 billion. However, it has now shrunk to just $594 million. A report by Pakistan's prestigious newspaper, The Nation, confirmed this 53 percent decline.

The primary reason for this significant decline is attributed to the frequent clashes between Kabul and Islamabad and the resulting closure of trade routes. 

According to reports, Pakistani exporters are suffering monthly losses of approximately $177 million due to the closures and border tensions. This amount translates into billions of Indian rupees.

Alarm bells for Pakistan

Economic experts believe that while both sides are suffering losses in this tug-of-war, Pakistan has been hit harder. Economic analyst Qutbuddin Yaqubi said that government and non-government data indicate that Pakistan has lost a significant and established market in Afghanistan.

Meanwhile, Mirwais Haji Zaada, First Deputy of the Afghanistan Chamber of Commerce and Investment, shed light on another important aspect. He said that while our traders and farmers have suffered, Pakistan's losses are even greater. 

This is not only due to the halt in trade with Afghanistan, but also because Pakistan's access to Central Asia was via Afghanistan. Now, that route has also been closed, effectively hampering Pakistan's regional trade ambitions.

Attempts at negotiations failed

It's not that efforts haven't been made to resolve this crisis, but the results on the ground have been negligible. The Afghanistan-Pakistan Joint Chamber of Commerce has also confirmed this decline in trade and acknowledged that traders on both sides are suffering significant losses. According to Chamber officials, efforts have been made to reopen the routes, but Pakistan is delaying the matter.

Khanjan Alokozai, head of the Joint Chamber, informed that a seven-member committee was formed in collaboration with Pakistan to resolve the issues. 

This initiative was also approved by the Islamic Emirate (government of Afghanistan). The plan was for representatives from the private sectors of both countries to meet and exchange views. However, this proposed meeting was postponed, and the matter remains pending.

Afghanistan
Pakistan