NAME: Usman Tariq

ENROLLMENT: 01-111192-143e]

7-G

COURSE: ANALYSIS OF INDUSTRIAL SECTOR OF PAKISTAN

ASSIGNMENT#1

DATED: 11-10-2022
 Trend ongoing in Pakistan
(The Future of Pak-Afghan Trade)
OBJECTIVE:

Pakistan and Afghanistan are naturally agrarian countries. Fresh fruits and
vegetables are reportedly the most important sector of Afghan agricultural activity,
providing a good source of livelihood for millions of farmers for ensuring food
security and provision of raw materials for the dried fruit sector.

DESCRIPTION:

There are many healthy and mouth-watering fresh products in the country. Some
well-known horticulturists consider Afghanistan to be the cradle of global fruit
production because the country has many varieties of fruit trees.

The recent country-by-country data shows that the bulk of products exported from
Afghanistan were purchased by India (47.5pc) and Pakistan (34.5pc). At 97.1pc,
Afghanistan’s exports were concentrated in Asian countries while the remaining
2.2pc were sold to European importers.

Currently fruit’s markets of Peshawar are flooded with an enormous quantity of fruits
imported from Afghanistan. Kandahari Anaar, a famous pomegranate of Kandahar, a
city of Afghanistan, is now being exported to Pakistan via Torkham Border and then
transported to Balochistan.

Nowadays, it is priced at Rs100-200 per kg. Last year it was about Rs250-300 per
kg. In a recent event, a local retailer of Peshawar fruit market said that this year fruit’s
quality is superior. Then why is there such a deflation in imports of Afghani products?
This is because, since the US takeover, Americans started to export tasteful
commodities to India, Iran, and other Asian countries. After the Taliban takeover, as
the foreign policy tilted in favour of Pakistan, almost all fruits trade has been shifted
to Pakistan. This excess supply of fruits has made the prices plunge in Pakistani
markets.

Given the volatile socio-economic situation in Afghanistan since the Taliban took
power two months back, imports of fruits and vegetables from the neighbouring
country have recently pushed up prices in Pakistani markets. As an indication that
Pakistan’s reciprocal policy shift, sales tax on fruits imported from Afghanistan is
zero, Ambassador Mohammad Sadiq said in a Twitter post while sharing a statement
from the federal council. “It will help Afghan businessmen and builders a lot,” he
said. Afghanistan’s new Taliban government welcomed the decision and called for
enhanced bilateral trade.
 VIEW POINT:

 Pakistan is Afghanistan’s largest trading partner, while Afghanistan is Pakistan’s

second-largest export market.
 Both Pakistan and Afghanistan face significant challenges in their respective security,
political, and economic realms over the coming years. The draw down of NATO
forces from Afghanistan has dealt a negative shock to both economies, particularly in
the transportation sector.
 While an agreement was signed in 2010 to strengthen trade relations and facilitate
Afghan transit trade through Pakistan, implementation has been mixed, with many on
both sides of the border complaining of continued barriers to exchange.
Target Market:
The market effected by this trade will be business people who have
invested in the trade sector. Increasing commerce, which will benefit producers and
consumers in both countries, can lay the groundwork for stable bilateral relations,
and help in increased cooperation on other issues as well.

Conclusion:
Peaceful economic cooperation between Afghanistan and Pakistan and
improved trade and transit facilities could help connect South Asia with Central Asia.
Both nations need to improve trade facilitation through streamlined payments
settlement and improved insurance mechanisms, use of bonded carriers, visa
issuance, trade financing, tax collection, and documentation.