PAKISTAN’S current transit trade with Afghanistan, once seen as a vital link for regional connectivity, has sharply deteriorated. In the first eight months of 2024-25 fiscal, transit trade plunged 66 per cent, falling from $2.24 billion to $754 million, while anti-smuggling measures pushed the decline to 84pc in the opening months of the year. These numbers reveal the extent to which the Afghan Transit Trade (ATT) system had been exploited for smuggling, with studies estimating that up to 40pc of goods meant for Afghanistan used to be re-routed back into Pakistan, causing an annual revenue loss of $2-3 billion.

Overall, illicit trade drains nearly Rs3.4 trillion from Pakistan’s economy each year, with transit misuse forming a major part of this loss. A course correction is surely overdue. Pakistan must shift to a trans-parent, technology-driven transit regime built on digital tracking, bonded carriers, end-use audits, and closer customs co-ordination with the regime in Kabul.

Such reforms will not only curb revenue losses, but also restore confidence in a system crucial for regional trade. As things stand currently, transit trade should serve economic cooperation, not fuel smuggling, distort markets, or strain bilateral ties.

Sadam Hussain
Larkana

Published in Dawn, December 11th, 2025

Opinion

Editorial

Unmasking stability
Updated 20 Jul, 2026

Unmasking stability

THREE reports last Friday — a widening food trade gap, return to a current account deficit, and the government’s...
Flood data gap
20 Jul, 2026

Flood data gap

HAVING endured one of its worst floods last year — triggered by intense monsoons and compounded by sudden water...
Zero-dose alert
20 Jul, 2026

Zero-dose alert

ALTHOUGH Pakistan recently announced its first National Vaccine Policy, it will take time before the immunity gap ...
Gulf escalation
Updated 19 Jul, 2026

Gulf escalation

The threat of the war restarting and the conflict expanding is very real.
Looming monsoon
19 Jul, 2026

Looming monsoon

THE monsoon season is here. The Pakistan Meteorological Department has issued a nationwide alert for widespread,...
Closing one file
19 Jul, 2026

Closing one file

ABDUL Rashid Wani was stopped by Indian soldiers near his home in Srinagar in July 1997. He never returned. Nearly...