A Partnership Rooted in History
Pakistan and Afghanistan share centuries-old trade and cultural ties rooted in geography, history, and people-to-people connections. As immediate neighbors linked by the historic Khyber Pass and multiple border crossings, the two countries have long served as each other’s gateways to South and Central Asia. Traditional trade caravans once moved freely between the two sides, exchanging goods such as textiles, dry fruits, carpets, livestock, and minerals—forming the foundation of a vibrant regional commerce.
Following the independence of Pakistan in 1947, formal trade relations with Afghanistan were institutionalized through various agreements, most notably the Afghanistan–Pakistan Transit Trade Agreement (APTTA), which allows Afghan goods access to Pakistani seaports and facilitates bilateral and transit trade. Over the decades, Pakistan has remained one of Afghanistan’s largest trading partners and a key conduit for Afghan imports and exports.
Looking Ahead
The Pak-Afghan International Expo serves as a milestone initiative to promote mutual business linkages, encourage investment, and highlight the shared economic destiny of the two nations. By fostering connectivity, trust, and cooperation, both countries aim to transform their historical trade partnership into a dynamic economic corridor linking South and Central Asia.
Trade Volume & Economic Impact
Historical Peak
Around US$2.5 billion annually in the mid-2010s.
Current Trade Estimate
Approximately US$800–900 million (official figures).
Potential Trade
Estimated to reach US$3–4 billion with improved border and transit infrastructure.
Key Trade Items
- Pakistan’s Exports: textiles, pharmaceuticals, construction materials, food products, and consumer goods.
- Afghanistan’s Exports: fresh and dry fruits, vegetables, coal, gemstones, and carpets.
Strategic Importance: Pakistan’s ports (Karachi & Gwadar) and modern terminals (Torkham, Chaman) remain critical for Afghan trade. The Integrated Transit Trade Management System (ITTMS) at key border points is modernizing commerce.
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