By: Ahsan Ansari
The history of Pakistan and Afghanistan’s bilateral relations has seen many ups and downs. However, in recent years, the pace at which trade between the two neighboring Islamic countries has grown reflects a deepening economic interdependence and mutual benefit. Afghanistan, which has suffered from decades of war and instability, is now moving toward peace and reconstruction, and Pakistan is playing a pivotal role in its economic recovery.
During the fiscal year 2024–2025, there has been a notable increase in bilateral trade volume. According to official data, trade between the two countries has surged by 25%, rising from $1.6 billion last year to nearly $2 billion. Pakistan’s exports to Afghanistan recorded a remarkable 31% growth, reaching $1.39 billion. These exports included sugar, pharmaceuticals, cement, textiles, steel, and various everyday consumer goods, all of which are in high demand in Afghanistan.
In return, Pakistan imported goods worth over $600 million from Afghanistan. These included coal, cotton, raisins, onions, tomatoes, talc, mung beans, and pomegranates. These imports not only help meet the needs of the Pakistani market but also contribute to the economic upliftment of Afghan farmers and traders.
In the first six months of 2025, the bilateral trade volume stood at approximately $980 million, with Pakistan’s exports to Afghanistan valued at $710 million and Afghan exports to Pakistan at $270 million. The increasing trade volume highlights the importance of both countries to each other’s markets. Afghanistan’s economy is significantly dependent on Pakistani goods, while Pakistan views Afghanistan as a crucial corridor to reach Central Asian markets.
To further boost trade, Pakistan and Afghanistan signed a one-year Preferential Trade Agreement on July 23, 2025. Under this agreement, both sides agreed to significantly reduce import tariffs on selected items. For instance, duties on Pakistani exports such as mangoes, oranges, bananas, and potatoes to Afghanistan were reduced from 60% to 27%. Similarly, Pakistan also reduced import duties on Afghan exports like pomegranates, apples, tomatoes, and grapes. This move has been widely welcomed by farmers, traders, and consumers in both countries.
In addition to trade policy, infrastructure development between the two nations is also underway to enhance economic cooperation. The UAP Railway Corridor—a proposed railway line linking Uzbekistan, Afghanistan, and Pakistan—is in its feasibility stage. Once completed, this project will provide Central Asian markets with direct access to Pakistan’s ports of Gwadar and Karachi, bringing about a potential economic transformation across the region.
In this context, Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar made an important visit to Kabul last week. During his visit, he met with top Afghan leadership, including Acting Prime Minister Mullah Hassan Akhund, Foreign Minister Amir Khan Muttaqi, and Interior Minister Sirajuddin Haqqani. His delegation included Railway Minister Hanif Abbasi, Special Representative for Afghanistan Mohammad Sadiq, and other senior officials.
During these high-level meetings, both countries agreed to enhance cooperation in areas such as trade, transit, security, border management, infrastructure, and diplomacy. A major outcome of the visit was the signing of the feasibility agreement for the UAP Railway Project, which is being seen as a significant step toward regional trade integration. The project is expected to create job opportunities in Afghanistan and provide Pakistan with direct access to Central Asia.
In the meeting between Ishaq Dar and Afghan Foreign Minister Amir Khan Muttaqi, both sides agreed to improve border management systems to facilitate smoother trade. It was also decided that facilities at key border crossings like Torkham and Chaman would be upgraded. On this occasion, Pakistan also announced its decision to appoint a new ambassador to Kabul, signaling Islamabad’s intent to formalize and strengthen diplomatic relations with the Taliban-led Afghan government.
Pakistan emphasized that all bilateral matters should be resolved through mutual respect, dialogue, and cooperation. Both countries acknowledged that border tensions and misunderstandings negatively impact trade and people-to-people relations, and must therefore be addressed through direct communication.
The Afghan Foreign Minister welcomed the Pakistani delegation and expressed a strong desire for long-term relations with Pakistan. He also confirmed that he would visit Islamabad in August 2025 to expand bilateral cooperation further. His visit would mark a significant step in strengthening ties, being the first of its kind in several years.
The recent developments clearly indicate that both countries are committed to deepening their trade, diplomatic, and regional ties. Although security and trust-related issues still persist, current trends suggest that the relationship between Pakistan and Afghanistan is heading in a more positive and constructive direction.
There is hope that both countries will move beyond border disputes and continue to take practical steps for promoting trade, connectivity, and regional peace. Pakistan’s increasing engagement in Afghanistan reflects its strategic vision that a peaceful and stable Afghanistan is vital for the progress and prosperity of the entire region.
(Email. aahsan210@gmail.com)
