KARACHI, Dec 22: More than Rs31 billion (about $500 million at Rs60 a dollar) two-way overland trade between Pakistan and Afghanistan is badly hampered by a broken stretch of road between Torkham in NWFP and Jalalabad in Afghanistan.

"As many as 930 trucks cross the Pak-Afghan border in NWFP every day," complained Amjad Rashid, a food merchant and active investor in Afghanistan's relief and rehabilitation programme. He said that there was virtually no road between Torkham and Jalalabad and a big quantity of goods got damaged in the way.

Traders doing business with Kabul say that a Lahore-based contractor has been given the job to construct the road for $100 million announced by the Pakistan government for Afghanistan. But no work has been done for the last six months. No one knows the reason for this delay but the trade continues to suffer.

"This problem of road construction between Torkham and Jalalabad should be over in the next three months," Abdul Muqtadar Frozan far, the recently arrived Afghan Consul General in Karachi, informed Dawn at his office.

He disclosed that the foreign ministry in Kabul, where he was posted before coming to Karachi, was now processing a project of laying down a 600-mile railway line from Chaman to Spin Boldak-Kandahar and then up to Herat.

This project, whenever it is taken up, has immense socio-economic and political significance which is bound to bring dramatic change in the entire region. Iranians are also planning to build a bridge over the river Hilmand, which will bring Afghanistan closer by 1,000 miles to the sea port in Iran. This project too has far reaching socio-economic and political implications in the region.

The IMF has estimated the size of Afghan economy at about $6 billion and per capita income at about $200. "But the economy is growing at an exceptionally high rate in double digit," Amjad Rashid said and added that the direction was evident from the import demand of Afghans.

He said Jalalabad remained the centre of trade with Pakistan, and Islamabad should consider opening bank branches and warehousing facilities at this town. "Afghanistan is now offering immense investment opportunities and it is time the government should give serious consideration for giving some special package to prospective Pakistan investors," he said. But how far the Pakistan government is serious in improving business relations with Afghanistan is evident from the fact that the meeting of bilateral Joint Ministerial Committee is overdue.

Traders say that neither the prime minister has time nor the commerce minister gives date for this meeting. The much-trumpeted $100-million assistance pledged more than a year ago remains unutilized.

"India is gradually spreading its influence in Afghanistan where its high-profile and conspicuous projects like hospitals, public buildings and transport vehicles are in full public glaze," an importer of Afghan goods in Jodia Bazar said.

Pakistan is emerging as one of the leading trading partners of Afghanistan, sharing more than one-fifth of its total trade of over $6 billion. The economic development and social changes in Afghanistan are well reflected in the rise in both import and export and structural changes in this trade.

With the construction going on at accelerated pace, exports from Pakistan to Kabul in 2003-04 increased by over Rs10 billion ($170 million) to Rs28.39 billion. Imports from Afghanistan increased to Rs3.73 billion from Rs2 billion.

What is worth noticing in Afghanistan's imports to Pakistan are increasing share of chemicals and a host of manufactured goods. The chemicals and manufactured items are obviously being re-exported into Pakistan after importing them under the transit trade facility.

Afghanistan continues to supply vegetables, fruits and dry fruits. Dry fruits import from Afghanistan has come down drastically this year as is evident from an exceptionally high cost of chilghoza and many other items.

Besides a variety of food items, livestock and other primary goods, Pakistan provides textiles, cement, construction material and other items. Pakistan has recently imposed a 25-per cent export duty on flour because of its unending demand.