September 17, 2020

In consolidation of confidence building measures between Islamabad and Kabul, Pakistan, on September 16, 2020, inaugurated another trade terminal at the Pak-Afghan border.

Jam Kamal, Chief Minister Balochistan inaugurated the new terminal. The terminal lies in Balochistan’s Qila Saifullah district, in the border region of Badini. The inauguration ceremony was attended by the Commander, Southern Command Lt. General Mohammad Wasim Ashraf, Inspector General of Frontier Corps North, provincial ministers, MPAs and other officials. Chief Minister, at the occasion, also shed light on the long and short-term benefits associated with the opening of the trade terminal.

The opening of a new terminal was much demanded by, and is of great significance for the business community, Chambers of Commerce and Industry, and the importers and exporters, because the previously used terminal – Chaman gateway – was overused due to Afghan transit trade, import export activities, along with the NATO supply for US troops posted in Afghanistan.

Addressing the inauguration ceremony, Chief Minister said that the new corridor will enhance economic activities, and generate jobs for locals due to the establishment of markets in the border areas. He said that with the inauguration of a new trade terminal the local people will get better opportunities for trade and business with Afghanistan. The opening of this corridor is a practical step by the Balochistan government towards their goal of increased economic activities and job-oriented projects in the current fiscal year.

While expressing his views, the CM also explained that with the completion of these projects, people will feel positive change. According to him public-centered projects with an inclusive strategy and proper planning are the only tools that can take Balochistan on the roads of modernization, stability and prosperity.

Lt. General Wasim Ashraf also declared the opening of this new terminal as a good step which will help the local people of the border areas in enhancing their trade and economic activities. He said the army, FC and the Balochistan government have made collective efforts, to provide this opportunity to the business community and the local traders and people living in the border areas.

Cross-border trade between Pakistan and Afghanistan, has a history of its own economics; embedded in strategic, political, security and social context of the region. The two countries are involved in both bilateral and transit trade, which has often been marred by fluctuations. Therefore, the potential for socio-economic gains has remained under-utilized. The most vulnerable to such fluctuations are the local populace, residing on both sides of the border, whose livelihoods depend on cross-border activities, such as transportation, small trade and daily wage labor.

However, now it seems that Pakistan’s targeted interventions to strengthen cross-border trade with Afghanistan will have positive spill-over effects in general and within Pak-Afghan border areas in particular. Opening a chain of border crossing points along Pak-Afghan border will greatly reduce the transaction costs; hence, boosting the economy, a win-win for both the countries.

The report is compiled by Laraib Nisar, who is a Defense and Strategic Studies’ graduate and works as an Intern at Center for Research and Security Studies (CRSS), Islamabad.

© Center for Research and Security Studies (CRSS) and Afghan Studies Center (ASC), Islamabad.

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