
Sher Mohammad Abbas Stanikzai
Michael Hughes: Afghanistan’s trade with Pakistan has plummeted since the rise of the Taliban 2.0 regime, driven by political rows and security issues, and to compensate Kabul is hoping to enhance commerce with Iran, India, and neighbors across Central Asia.
Tensions between Afghanistan and Pakistan have resulted in closure of trade routes and stiff tariffs along with bans on hundreds of items. Pakistan trade is down 60 percent overall and transit trade is off by 80%. Annual trade with Pakistan has fallen from $2 billion to about $500 million, according to Afghan commerce authorities.
“We tried a lot to convince the government of Pakistan but border closure and transit challenges such as high taxes led to a significant decline in trade with Pakistan,” Afghanistan Chamber of Commerce and Investment Deputy Head Khan Jan Alokozai said as quoted by Arab News on October 3.
Taliban have been reluctant to go nuclear in the trade war although they continue warning Islamabad of dire consequences. Taliban’s Political Deputy Minister of Foreign Affairs, Sher Mohammad Abbas Stanikzai, expressed this hesitance combined with a veiled threat.