Exploring Trade, Transit Challenges and Opportunities in the Afghanistan-Pakistan Trade Corridor: A Comprehensive Analysis

Background: Afghanistan’s trade with neighboring countries, especially Pakistan, is vital due to its landlocked geography. The Afghanistan-Pakistan trade corridor faces challenges like poor infrastructure, security issues, and bureaucratic hurdles. However, regional initiatives such as CPEC (China–Pakistan Economic Corridor) present opportunities to strengthen bilateral trade and economic cooperation. Afghanistan is a landlocked country and Pakistan is the most important partner because it provides the shortest and most established access to seaports. Contrast Routes through Iran and Turkmenistan Faces Higher Costs, Sanctions-Related Risks, and Weaker Logistics Networks Making They Less Reliable.Purpose: To examine the trade and transit dynamics between Afghanistan and Pakistan by identifying key challenges and opportunities in their trade corridor, with the aim of providing policy recommendations to enhance bilateral trade and regional cooperation. Design/Methodology/Approach: This study uses a mixed-methods approach, combining both quantitative and qualitative data. Quantitative analysis focuses on trade volumes, infrastructure, and policy impacts, while qualitative insights are drawn from A total of 15 interviews were conducted, comprising five policymakers, five traders, and five experts. This comprehensive approach allows for a deeper understanding of the factors affecting the Afghanistan-Pakistan trade corridor.Findings/Results: The study finds that improved infrastructure boosts trade efficiency, while security concerns and bureaucratic barriers significantly hinder it. It also highlights that regional initiatives like CPEC offer promising opportunities to enhance Afghanistan-Pakistan trade relations.Conclusion: The study concludes that addressing infrastructure gaps, security issues, and administrative inefficiencies is essential for improving trade between Afghanistan and Pakistan. Strengthening regional cooperation and implementing targeted policy reforms can lead to a more stable and mutually beneficial trade relationship.Originality/value (State of the art): Uses both quantitative and qualitative methods to make policy recommendations for improving Afghanistan-Pakistan trade. Its Newness By Showing Why Pakistan is More Important For Afghanistan Trade Than Other Neighboring Countries. Additionally, it integrates policies for infrastructure, political stability, and trade facilitation into one framework, providing fresh insights for policymakers. Keywords: Afghanistan-Pakistan trade relations, China-Pakistan Economic Corridor (CPEC), regional economic cooperation, infrastructure challenges, trade facilitation