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05 Feb

Pakistan’s Disruption of Afghan Transit Trade during COVID-19 Pandemic

by Shoaib A. Rahim

The arrival of the COVID- 19 pandemic was an unprecedented event, and not many governments knew how to respond. The implementation of lockdown and social distancing was considered as an immediate and the only available response. The decision not only affected the economic activities nationally but also disrupted the international supply chains. This, unarguably, had severe economic repercussions for all the countries, but the intensity was even more for vulnerable and least developed landlocked countries. Afghanistan also bore the brunt of the economic repercussions of the pandemic as lockdowns and supply chain disruption transpired into an economic debacle. The trade balance of the country with imports of more than seven billion dollars and exports of less than one billion dollars reveals the dependence of the landlocked economy on the uninterrupted and smooth transit trade. Moreover, the country is mainly dependent on its neighboring country Pakistan for transit trade as around 90,000 to 100,000 transit containers pass through it annually, mainly via Torkham and Chaman-Spin Boldak crossing points. As such, the disruption of transit trade meant almost the collapse of the Afghan economy. The arrival of pandemic and the decision of Pakistan to close border crossing points for its neighbors had the biggest impact on Afghanistan, its only landlocked neighbor. The country announced the closure of the Chaman-Spin Boldak Crossing point in early March, and that of all other crossing points in mid-March left thousands of Afghanistan-bound containers stranded at the port, en route, and at the crossing points. The government of Pakistan promised to help Afghanistan in terms of trade facilitation during the hard times. In mid-March, Pakistan’s Prime Minister Imran Khan announced re-opening the Chaman-Spin Boldak crossing point, and assurance to support Afghanistan through smooth transit services during the global pandemic extended a sigh of relief. However, this relief did not last long as it took weeks before the crossing points were opened and months before the transit trade normalized.

About Shoaib A. Rahim

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Zabuli Center is Afghanistan's first economic research center, dedicated to studying and analyzing economic issues and sustainable development. Through research and studies, the center aims to propose effective policies and solutions for Afghanistan's economic growth.

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