Pak afghan economic relationship

Traders for increasing Pak-Afghan economic ties

pak afghan economic relationship

Pak-Afghan trade volume, despite having a potential of $5 billion, has people- to-people contact is crucial for sustainable trade relations;. Though an agreement was signed in to strengthen trade relations and facilitate Afghan transit trade through Pakistan, implementation has. PESHAWAR: The business community and traders of Pakistan and Afghanistan on Wednesday welcomed the stance of Pakistan.

Pakistan provides Afghanistan with the shortest access to the sea but rail and road freight services have not been fully developed to leverage this locational advantage.

Pak-Afghan economic ties - Newspaper -

Liberalisation of the transportation sector by allowing the entry of newcomers and promoting competition among the carriers, expanding the existing highways and rehauling the railway subsector would go a long way in facilitating both bilateral and transit trade. Exports of the mining sector from Afghanistan would require that the transport corridors be functioning by at the latest. Afghanistan can also earn substantial revenues from transit trade and energy to and from the Central Asian Republics.

pak afghan economic relationship

President Ghani has announced the establishment of industrial zones for Pakistani investment. As Afghanistan has an LDC status Pakistani private investors can set up export-oriented industries in these zones attracting preferential lower tariffs in the advanced countries. Pakistani chambers and business councils should collect and disseminate detailed information widely among their members. These zones would bring foreign exchange earnings badly needed by Afghanistan substituting over time the volume of foreign aid that will substantially decline.

Pakistani investors, to be successful, would require better infrastructure in the form of highways, railways, integrated border crossings etc. Several other border posts should be opened and the missing infrastructure put in place.

pak afghan economic relationship

China can take the lead in building the necessary infrastructure; Pakistani private investors can set up the industries and bring skilled manpower and Afghanistan can set up a one-stop shop to facilitate investment flows and resolution of problems.

In addition to industrial zones, Afghanistan offers investment opportunities in construction, food processing and retail. Pakistani investors should take first-mover advantage as their transportation costs would be low and they understand the consumer tastes and preferences better. The government here has to expedite the formation of the Ex-Im Bank which was announced in the budget.

The Heat— Afghanistan–Pakistan Relations 05/10/2016

The bank will be the ideal vehicle for scrutinising investment proposals and furnish a range of funding and non-funding instruments eg guarantees to those whose proposals are found to be feasible. In the area of trade in services, Pakistan has earned a good reputation in banking and insurance, telecommunications, IT enabled services, engineering consultancy, architecture and accountancy.

Well-reputed hospitals, medical laboratories, clinics, nursing training institutes, general and specialised universities and colleges, vocational and technical training institutes from Pakistan can enter into partnerships and agreements with their Afghan counterparts.

pak afghan economic relationship

After all, the youth bulge has to be gainfully employed for which quality education is a pre-requisite. The affordability to this kind of education would be a major consideration for which the Pakistani experience would come in handy.

Traders for increasing Pak-Afghan economic ties

In the coming years, Pakistan should negotiate free trade and bilateral investment agreements with Afghanistan. The trade agreement can have sensitive lists that protect vulnerable items and these lists can be gradually phased out over a given period. The single-page agreement, which contained seven short articles, was signed by Durand and Khan, agreeing not to exercise political interference beyond the frontier line between Afghanistan and what was then the British Indian Empire.

Concurrently, the Afridi tribesmen began to rise up in arms against the British, creating a zone of instability between Peshawar and the Durand Line. As a result, travel across the boundary was almost entirely halted, and the Pashtun tribes living under the British rule began to orient themselves eastward in the direction of the Indian railways.

By the time of the Indian independence movementprominent Pashtun nationalists such as Abdul Ghaffar Khan advocated unity with the nearly formed Dominion of Indiaand not a united Afghanistan — highlighting the extent to which infrastructure and instability began to erode the Pashtun self-identification with Afghanistan. By the time of Pakistan independence movementpopular opinion among Pashtuns was in support of joining the Dominion of Pakistan.

The Afghan government has not formally accepted the Durand Line as the international border between the two states, claiming that the Durand Line Agreement has been void in the past.

pak afghan economic relationship

Pakistan feels that the border issue had been resolved before its birth in It also fears a revolt from the warring tribes which could eventually bring the state down as it happened when Ahmad Shah Durrani unified the Pashtuns and toppled the Mughal Empire of India.

This unmanagable border has always served as the main trade route between Afghanistan and the South Asiaespecially for supplies into Afghanistan. Secondly, it politically and financially backed secessionist politicians in the Khyber Pakhtunkhwa in the s. Afghanistan's policies placed a severe strain upon Pakistan—Afghan relations in the s, up until the s, when the movement[ which?

The Pashtun assimilation into the Pakistani state followed years of rising Pashtun influence in Pakistani politics and the nation's bureaucracy, culminating in Ayub KhanYahya KhanIshaq Khan — all Pashtuns, attaining leadership of Pakistan. The largest nationalist party of the time, the Awami National Party ANPdropped its secessionist agenda and embraced the Pakistani state, leaving only a small Pakhtunkhwa Millat Party to champion the cause of independence in relation to both Pakistan and Afghanistan.

Despite the weaknesses of the early secessionist movement, this period in history continues to negatively influence Pakistani-Afghan relations in the 21st century, in addition to the province's politics.

pak afghan economic relationship

War in Afghanistan —presentAfghans in Pakistanand Afghanistan—Pakistan skirmishes George Crile III and Charlie Wilson Texas politician with an unnamed political personality in the background person wearing the aviator glasses looking at the photo camera. They were the main players in Operation Cyclonethe code name for the United States Central Intelligence Agency program to arm and finance the multi-national mujahideen during the Soviet—Afghan Warto Relations between Afghanistan and Pakistan began deteriorating in the s after Pakistan supported rebels such as Gulbuddin HekmatyarAhmad Shah Massoud[33] Haqqanisand others against the governments of Afghanistan.

After the Soviet invasion of Afghanistan in Decemberthe United States joined Pakistan to counter Soviet influence and advance its own interests in the region. In turn, AfghanIndian and Soviet intelligence agencies played their role by supporting al-Zulfikar — a Pakistani leftist terrorist group responsible for the March hijacking of a Pakistan International Airlines PIA plane.

Its goal was to overthrow the military regime that ousted Bhutto. Pakistan became a major training ground for roughlyforeign mujahideen fighters who began crossing into Afghanistan on a daily basis to wage war against the communist Afghanistan and the Soviet forces. The mujahideen included not only locals but also Arabs and others from over 40 different Islamic nations.

Many of these foreign fighters married local women and decided to stay in Pakistan, among them were radical Muslims such those of Saudi-led Al-Qaeda and Egyptian Muslim Brotherhood as well as prisoners from Arab countries. There were no regular schools provided for the refugees but only madrasas in which students were trained to become members of the Taliban movement. The Taliban claimed that they wanted to clean Afghanistan from the warlords and criminals.