Afghanistan Towards Independent Transit Trade: A Decay of Affiliation to Pakistan

Abstract

Purpose: Afghanistan has been using the territory of Pakistan for its transit trade purposes since ancient times. Pakistan has always been putting pressure on Afghanistan for providing its transit trade facilities. However, in post 2014 scenario, the National Unity Government of Afghanistan initiated to explore new transit trade routes owing to not fully rely on Pakistani ports. Thus, the main purpose of this study is to reveal that Afghanistan is not solely relying on Pakistan thence. Design/Methodology: The data used in this article have been retrieved from World Bank and National Statistics and Information Authority of Afghanistan. A graphical analysis and a simple model called Terms of Trade carried out to explain the transit trade affiliation scenario of Afghanistan to Pakistan in pre and post 2014. Findings: The finding reveals that Afghanistan is no longer relying on Pakistani ports and describes that since 2014 the affiliation to Pakistan has been deteriorated, especially by establishment and inauguration of Chabahar Port, Lapis Lazuli Corridor and the air corridors between Afghanistan and other counties. Conclusion: The article identifies and explains the Chabahar Port, India–Afghanistan air corridor and the Lapis Lazuli corridor as the finest alternatives to Pakistani transit trade routes.