Cross-Border Commerce: Exploring Trade Dynamics Pakistan with China and Afghanistan.

Abstract

Cross-border trade serves as a crucial driver of economic growth in fragile and conflict-affected states, facilitating access to essential goods and services for vulnerable populations and contributing to social and economic recovery. Pakistan and China have a long-standing history of trade relations, with a significant upturn observed following the signing of the China-Pakistan Free Trade Agreement (CPFTA) on November 24, 2006. Moreover, Pakistan and Afghanistan are key trading partners, although the implementation of agreements aimed at enhancing trade, particularly transit trade through Pakistan, has faced challenges. China is advocating for the opening of five major border crossings between Pakistan and Afghanistan to facilitate bilateral and transit trade, including the resumption of Afghan exports to India. Utilizing a qualitative research approach, this study underscores the importance of further efforts by the governments of Pakistan and Afghanistan to strengthen mutually beneficial trade relations. The CPFTA stands as a pivotal strategic link between China and Pakistan, poised to bolster bilateral ties and foster economic cooperation between the two nations.