The bilateral Pak-Afghan Trade experienced a significant setback in December 2023, witnessing a year-on-year (YoY) decline of 16%. This dip in trade relations between the neighboring countries also translated to a month-on-month (MoM) decrease of 28% during the last month of the year.
According to recent data, the total bilateral trade volume for December amounted to $125.2 million. Pakistan’s exports to Afghanistan played a pivotal role, accounting for $86.4 million in the same month. However, this figure represented a 7% YoY decline from the $92.7 million recorded in December 2022 and a substantial 22% MoM drop from the total exports of $111 million in November 2023.
In contrast, imports in December 2023 experienced a notable downturn, plummeting by 39% MoM and 32% YoY to $38.8 million. The reasons behind this sharp decline in bilateral trade remain elusive, leaving industry experts to speculate on potential factors contributing to the unfavorable trend.
Geopolitical tensions and economic challenges are among the suggested factors influencing this decline in Pak-Afghan trade. The complex and evolving nature of international relations, combined with economic uncertainties, may be influencing trade dynamics between the two nations.
As both countries navigate these challenges, stakeholders and analysts closely monitor the situation, seeking clarity on the underlying factors and anticipating the potential impact on future trade relations. The coming months will shed more light on whether this decline is a transient phenomenon or indicative of more sustained challenges in the Pak-Afghan trade landscape.
Also Read: Caretaker Government Sets Unprecedented Debt Record
