Afghan transit trade gains traction via Gwadar Port

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ISLAMABAD, JUN 16 (DNA): The second vessel under the Afghan Transit Trade has arrived at Gwadar Port, carrying 20,000 metric tons of Di-Ammonium Phosphate (DAP) fertilizer, Gwadar Pro reported on Monday.

The development marks a significant step toward regional connectivity and economic integration, enhancing Afghanistan’s access to global markets through Pakistan’s deep-sea port.

“Gwadar is emerging as a dependable maritime gateway. This milestone reflects international confidence in Pakistan’s port infrastructure and reaffirms our commitment to making Gwadar a hub of regional trade,” said Junaid Anwar Chaudhry, Federal Minister for Maritime Affairs.

Gwadar Port was first operationalized for Afghan transit trade in April 2020 under the Afghanistan–Pakistan Transit Trade Agreement (APTTA 2010), with the arrival of SIBULK TRADITION carrying 16,000 tonnes of urea in May 2020.

The cargo was bagged and transported in sealed trucks to Afghanistan, marking the start of seaborne trade to the landlocked country.

Between July and April of FY 2024–25, Pakistan’s exports to Afghanistan surged to USD 1.138 billion, a 31% increase from the previous year; while imports from Afghanistan rose 14% to USD 557 million, according to the Trade Development Authority of Pakistan (TDAP).

Tahir Khan, a senior journalist and Pak-Afghan affairs expert, told Gwadar Pro that Gwadar offers Afghan traders a shorter and more cost-effective route compared to Karachi ports.

“Gwadar is closer to Chaman and experiences less traffic congestion than the Karachi-Torkham corridor, saving both time and cost,” he said.

According to Tahir Khan, “Since both Pakistan and Afghanistan have agreed to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan, the recent use of Gwadar Port by Afghan traders should be seen as an important development in this context.”

Pakistan has also replaced the requirement of bank guarantees with insurance guarantees for bulk cargo in Afghan transit trade through Gwadar.

This move specifically benefits imports of DAP, wheat, sugar, and other essential commodities.

“This measure will help the Afghan business community and consumers and is a step towards ease of business through Pakistan,” said Muhammad Sadiq, Pakistan’s Special Representative in Afghanistan, in an earlier statement posted on his official X.