Barriers to Afghan Exports in Pakistani Markets: A Case Study of Fresh Fruit Trade

Abstract

Bilateral trade between Pakistan and Afghanistan has long been a significant contributor to regional economic activity, yet it remains hampered by numerous challenges that limit its full potential. Chief among these ae the non-tariff trade barriers (NTBs), including regulatory obstacles, inconsistent border policies, complex customs procedures, and frequent border closures, which have become major hindrances. This study examines the effects of NTBs on small and medium enterprises (SMEs) involved in cross border trade between Pakistan and Afghanistan. Utilizing both primary data from traders and secondary sources, the research illustrates how these barriers elevate transaction costs, restricts market access, and encourage informal trade networks. The findings indicate that SMEs which lack the financial institutional resources to manage delays and additional expenses are disproportionately impacted, curtailing their competitiveness and growth prospects. Moreover, the study underscores how persistent NTBs erode trust between trading partners and obstruct broader regional integration. The paper concludes by proposing policy measures to streamline border procedures, enhance transparency, and promote institutional cooperation to reduce NTBs and support SMEs in both countries. Addressing these issues could unlock substantial trade potential, bolster economic resilience, and contribute to long -term regional stability.