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Channelizing Afghanistan to Pakistan Informal Trade into Formal Channels

Author

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  • Adil Khan Miankhel

    (Embassy of Pakistan)

Abstract

Along with other routes, the Afghanistan-Pakistan Transit Trade Agreement (APTTA) is being used by informal traders for smuggling goods into Pakistan. Despite enforcement measures, smuggling continues. Informal traders import goods into Afghanistan, and then route those goods back to Pakistan through informal channels to take advantage from the arbitrage opportunity provided by the differences in applied tariff/taxes between the two countries. Therefore, in addition to strict enforcement measures, the issue of informal trade needs to be handled through incentive measures.

Suggested Citation

  • Adil Khan Miankhel, 2016. "Channelizing Afghanistan to Pakistan Informal Trade into Formal Channels," Governance Working Papers 25650, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:govern:25650
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    File URL: http://www.eaber.org/node/25650
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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