Closing of Torkham Border: A Loss or an Opportunity for Economic Independence?

In a note, Rahmatullah Faizan examines the effects of the closure of the Torkham port on trade relations between Afghanistan and Pakistan and points out that these developments, although they have brought challenges, can provide an opportunity for the growth of domestic production and the reduction of Afghanistan's economic dependence on Pakistan. Referring to the vast potential of the eastern provinces, especially Nangarhar, Faizan emphasized the need to expand trade relations with other countries and focus on domestic production.

 

Read the full text of Mr. Rahmatullah Faizan’s note below:

 

Afghanistan has long been dependent on the Pakistani market for trade and economic sectors, but recent developments show that with the decline in trade, the country has turned its attention to growing domestic industries. This change is especially important for eastern provinces, such as Nangarhar, because it has provided a basis for the development of domestic production.

 

Trade relations between Afghanistan and Pakistan have declined due to political and security factors, and as a result, Afghanistan has focused on developing domestic production instead of imports. Now, many of the necessary goods that were previously imported from Pakistan, such as construction materials, chicken feed, dairy products, plastic carpets and rugs, and agricultural equipment, are produced domestically. This development is considered an important step towards economic self-sufficiency.

 

Known as the eastern gateway to Afghanistan, Nangarhar has vast potential in the agricultural, industrial, and mineral resource sectors due to its four seasons. The province is an important source of domestic production due to its mining, industrial parks, and agricultural products, and in recent years, serious steps have been taken to develop domestic production.

 

With these changes, Afghanistan has tried to expand its trade relations with other countries, such as Iran and Central Asian countries, so as not to be under the economic monopoly of Pakistan. The closure of the Torkham gate not only provided an opportunity for the growth of Afghan domestic production, but also caused harm to the Pakistani economy. The markets of the eastern provinces, which were previously the main centers for Pakistani goods, are now open to Iranian and other countries' goods, which is a major economic loss for Pakistani businessmen.

 

Afghanistan's new trade route shows that if the country continues to grow domestic production and expand its trade relations with alternative markets, it can take important steps towards economic independence. To achieve this goal, the government must provide more opportunities for investment in domestic production, expand industrial parks, and pursue diversification of trade routes.

 

Overall, the decline in trade with Pakistan has placed Afghanistan in a position to move towards economic self-sufficiency through the development of domestic production. If this trend continues, Afghanistan will move closer to a self-reliant economy in the coming years and its dependence on the Pakistani market will decrease.