Gwadar emerges as gateway for Afghan Transit Trade

Gwadar emerges as gateway for Afghan Transit Trade as second shipment of Di-Ammonium Phosphate (DAP) fertilizer arrived on the port recently.

The second shipment under the Afghan Transit Trade has arrived at Gwadar Port, carrying 20,000 metric tons of Di-Ammonium Phosphate (DAP) fertilizer. This development is seen as a major advancement for regional connectivity and economic integration, providing Afghanistan with improved access to international markets via Pakistan’s strategic deep-sea port.

Highlighting the port’s growing significance, Pakistan’s Federal Minister for Maritime Affairs, Junaid Anwar Chaudhry, stated that Gwadar is steadily emerging as a reliable maritime gateway. He noted that this achievement reflects international confidence in Pakistan’s port infrastructure and underscores the country’s vision of making Gwadar a regional trade hub.

Gwadar Port was first used for Afghan transit trade in April 2020 under the Afghanistan–Pakistan Transit Trade Agreement (APTTA 2010), with its maiden shipment arriving in May 2020. The initial cargo, 16,000 tonnes of urea, was offloaded, bagged, and transported to Afghanistan in sealed trucks, initiating sea-based trade for the landlocked country.

From July to April in fiscal year 2024–25, Pakistan’s exports to Afghanistan reached USD 1.138 billion, showing a 31% rise compared to the previous year. Meanwhile, imports from Afghanistan increased by 14%, totaling USD 557 million, according to the Trade Development Authority of Pakistan (TDAP).

Senior journalist and expert on Pak-Afghan relations, Tahir Khan, told Gwadar Pro that Gwadar offers Afghan traders a more efficient and cost-effective route than Karachi. He noted that Gwadar’s proximity to Chaman and its lighter traffic compared to the Karachi-Torkham route saves both time and money.

Tahir Khan further emphasized that with both Pakistan and Afghanistan agreeing to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan, the recent use of Gwadar Port by Afghan traders holds particular strategic significance.

In a facilitative move, Pakistan has replaced the requirement for bank guarantees with insurance guarantees for Afghan bulk cargo through Gwadar. This adjustment particularly aids in the import of essential goods like DAP fertilizer, wheat, and sugar.

Muhammad Sadiq, Pakistan’s former Special Representative for Afghanistan, previously noted that this policy shift would benefit Afghan businesses and consumers alike, marking a step forward in improving the ease of doing business through Pakistan.