Abu Zolfiqar
Rest in Peace
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- Feb 12, 2009
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it's worth mentioning here that the Pakistani Rupee remained the de facto official currency in parts of Afghanistan before and following the introduction of the current Afghan currency (the 'afghani') in 2003. Afghani following its introduction increasingly became supplanted by the use of Pak Rupees in several parts of eastern Afghanistan, particularly in the vicinity of major border crossings --e.g. Torkham and Chaman (Spin Boldak).
Afghan govt. is trying to reduce the conversion to rupees by traders and merchants though even to this day even some government workers receive their salaries in afghani, quickly convert them to rupees on pay day.
The informal sector can never be ignored since in value terms it's probably equivalent or even more than the actual formal trade. Informal trade and lax border enforcement has been more injurious to Pakistan. We enjoy a large trade surplus over Afghanistan and even then many of the goods we export (such as wheat and sugar) are re-packaged and smuggled back into Pakistan - which costs us.
Few Afghans realize that if they are bitter about the importance of Pakistan on their economy then they should've abandoned their culture of fighting eachother and drugs/warlordism/regionalism and worked towards building their country and having an actual long-term policy (i dont even know who is on their planning commission or whether they even have one)
however because of geography (which cant be changed) Karachi/Gwadar will always be important routes for Afghan imports and exports....and it is highly suggested that instead of isolating themselves, they learn to live like proper neighbours alongside Pakistan.
development of Chahbahar (assuming indian dont succumb to western pressure) can certainly be advantageous to Afghans at least in the western provinces and in fact the more pressure there is on Gwadar to perform - the more competitive it will be. Afghan merchants themselves will be greatly advantaged once Gwadar is fully operational.
With the completion of Islamabad-Tehran-Istanbul railway, Afghans will have the cheapest direct land access to the gates of European Union. Therefore it's in their interests to ensure that their ministers don't engage in any anti-Pakistan "posturing" and politicking simply because they can't afford to.
As I said before however - Chah bahar and Gwadar are rivals - but business is business. Competition is healthy and promotes operational efficiency. Pakistan already enjoys geographic advantages so the work is already laid out and facilitated; all we need is proper leadership and the right policies and approach. Improved border security and a functioning government (on both sides) would be kind of nice.
p.s. neither Gwadar nor Chah Bahar are Afghan centric. The only reason ports is being discussed is because Pakistan flatly denied indians the Pakistani route - a move which, for national security reasons, is not unfounded
Afghan govt. is trying to reduce the conversion to rupees by traders and merchants though even to this day even some government workers receive their salaries in afghani, quickly convert them to rupees on pay day.
The informal sector can never be ignored since in value terms it's probably equivalent or even more than the actual formal trade. Informal trade and lax border enforcement has been more injurious to Pakistan. We enjoy a large trade surplus over Afghanistan and even then many of the goods we export (such as wheat and sugar) are re-packaged and smuggled back into Pakistan - which costs us.
Few Afghans realize that if they are bitter about the importance of Pakistan on their economy then they should've abandoned their culture of fighting eachother and drugs/warlordism/regionalism and worked towards building their country and having an actual long-term policy (i dont even know who is on their planning commission or whether they even have one)
however because of geography (which cant be changed) Karachi/Gwadar will always be important routes for Afghan imports and exports....and it is highly suggested that instead of isolating themselves, they learn to live like proper neighbours alongside Pakistan.
development of Chahbahar (assuming indian dont succumb to western pressure) can certainly be advantageous to Afghans at least in the western provinces and in fact the more pressure there is on Gwadar to perform - the more competitive it will be. Afghan merchants themselves will be greatly advantaged once Gwadar is fully operational.
With the completion of Islamabad-Tehran-Istanbul railway, Afghans will have the cheapest direct land access to the gates of European Union. Therefore it's in their interests to ensure that their ministers don't engage in any anti-Pakistan "posturing" and politicking simply because they can't afford to.
As I said before however - Chah bahar and Gwadar are rivals - but business is business. Competition is healthy and promotes operational efficiency. Pakistan already enjoys geographic advantages so the work is already laid out and facilitated; all we need is proper leadership and the right policies and approach. Improved border security and a functioning government (on both sides) would be kind of nice.
p.s. neither Gwadar nor Chah Bahar are Afghan centric. The only reason ports is being discussed is because Pakistan flatly denied indians the Pakistani route - a move which, for national security reasons, is not unfounded