A Qualitative Paper - Factors Affecting the Transit Trade: A Case Study of Afghanistan Pakistan Transit Trade Agreement

Abstract

The study aimed to identify challenges having substantive effect on transit trade between Afghanistan and Pakistan under the transit regime established in 2010. In doing so, a qualitative survey was conducted for identification of challenges affecting transit trade. This included interviews with registered firm owners to collect primary data. The collected data was analyzed through thematic analysis using NVivo software. Results suggest that the decrease in volume of transit trade is due to frequent border closure, War on terror/insurgency in the region, and competitive regional rivalry and had strong effects on time sensitive goods. These non-tariff barriers to transit trade have significant impact on transit trade thus resulted in stagnancy in growth of transit trade i.e. Afghanistan Pakistan Transit Trade Agreement (APTTA). This evidence also informs that other factors such as scarce use of information and communication technology or digital divide, lack of government support, u-turn trade delay in clearance, border skirmishes and political unrest were average factors hindering the Afghanistan and Pakistan transit trade hampered transit trade and remained less significant factor.