Trade & Transit Cooperation with Afghanistan: Results from a Firm-level survey from Pakistan

Abstract

This paper aims to inform academia and policymakers about ways and means to first increase trade with Afghanistan, and second, to discuss trade-related procedures and processes that could be streamlined for reducing the cost of doing business (with Afghanistan). Using a firm-level survey of exporters, traders, transporters and distributors, it also discusses how best the Pakistani business community can position itself under various economic scenarios in Afghanistan. It also contends as to how the increased cost of doing business is already hurting the competitiveness of Pakistani manufacturing and trading community. Besides highlighting upcoming competition from Iran and India, the paper argues that small improvements in transit facility for Afghan goods (via Pakistan) may lead to more commercial trade prospects between the two countries.