A second vessel utilizing the Afghan Transit Trade route has arrived at Gwadar Port, delivering a cargo of 20,000 metric tons of Di-Ammonium Phosphate (DAP) fertilizer. This development signifies a substantial advancement in regional connectivity and economic integration, bolstering Afghanistan’s access to international markets via Pakistan’s deep-sea port.
Federal Minister for Maritime Affairs, Junaid Anwar Chaudhry, stated, “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.” Gwadar Port was initially activated for Afghan transit trade under the Afghanistanā€“Pakistan Transit Trade Agreement (APTTA 2010) in April 2020. The inaugural shipment under this arrangement arrived in May 2020 when the vessel SIBULK TRADITION delivered 16,000 tonnes of urea, which was subsequently bagged and transported in sealed trucks to Afghanistan, initiating seaborne trade for the landlocked nation.
Trade statistics reveal significant growth; between July and April of FY 2024ā€“25, Pakistan’s exports to Afghanistan surged to USD 1.138 billion, marking a 31% increase from the previous year. Concurrently, imports from Afghanistan rose by 14% to USD 557 million.
Tahir Khan, a senior journalist and Pak-Afghan affairs expert, highlighted Gwadar’s logistical benefits for Afghan traders, noting, “Gwadar is closer to Chaman and experiences less traffic congestion than the Karachi-Torkham corridor, saving both time and cost.” Khan further contextualized the development, stating, “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.”
In a significant policy shift, Pakistan has replaced the requirement for bank guarantees with insurance guarantees for bulk cargo in Afghan transit trade transiting through Gwadar. This adjustment particularly facilitates the import of DAP, wheat, sugar, and other essential commodities. Muhammad Sadiq, Pakistan’s Special Representative in Afghanistan, emphasized the impact in an earlier statement: “This measure will help the Afghan business community and consumers and is a step towards ease of business through Pakistan.”
