The Taliban militants have halted all imports and exports from India via Pakistan’s transit routes following their recent seizure of Afghanistan, according to the Federation of Indian Export Organizations (FIEO).
According to FIEO Director General Ajay Sahai, the terror group has halted freight movement through Pakistan’s transit routes, thereby halting imports from the nation.
“We keep a close eye on events unfolding in Afghanistan. Pakistan serves as a transit country for imports from there. As of now, the Taliban has halted cargo movement to Pakistan, effectively halting imports “According to Sahai, ANI.
“In terms of exports, some commodities are transported via the international North-South Corridor, which is operating normally at the moment. While certain other items are also transported via the Dubai route, which is currently operational, “he continued.
India has a long history with Afghanistan, particularly in trade. India has also made significant investments in Afghanistan.
“Indeed, we are one of Afghanistan’s top trading partners, with exports to Afghanistan totaling over USD 835 million in 2021. We imported approximately USD 510 million worth of goods. Apart from trading, we also have a sizable investment in Afghanistan. We have spent over USD 3 billion in Afghanistan and currently have 400-odd projects in the country, some of which are ongoing “Sahai stated.
He stated that India maintains robust commercial ties with Afghanistan. India exports sugar, pharmaceuticals, clothing, tea, coffee, spices, and transmission towers at the moment.
“Imports are closely tied to and heavily reliant on dried fruits. Additionally, we import little gums and onions from them “FIEO’s DG stated.
Despite the rapidly changing scenario in Afghanistan, the FIEO DG expressed optimism for the country’s trade connections.
“I am fairly certain that Afghanistan will eventually recognise that economic development is the only path forward and will continue with that type of trade. I believe that the new regime will seek political legitimacy, and as such, India’s position will become critical for them as well “Sahai stated.
The FIEO has voiced concern that dry fruit prices may increase in the coming days due to India’s reliance on Afghanistan for around 85 percent of its dry fruit imports.
“While this may not have an immediate effect on costs, the fact that one of the major sources of import has ceased to exist raises the possibility of price increases,” Sahai added.
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