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A border that weakens state, how Pakistan can fix it | The Express Tribune

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A border that weakens state, how Pakistan can fix it | The Express Tribune


Move is part of plan to secure Durand Line which remains bone of contention. PHOTO: INP


ISLAMABAD:

In the unforgiving geography of South and Central Asia, Pakistan’s western frontier with Afghanistan has long been a paradox — a line of insecurity that could have been a corridor of opportunity.

For decades, the 2,600-kilometre Durand Line has carried the weight of unresolved politics, cross-border militancy, and economic leakage. Yet today, amid regional realignments and shifting trade routes, this fragile border demands not only fortification but transformation — from a porous passage into a gateway of sovereignty.

Pakistan’s western border has historically been more open than managed — a legacy of tribal linkages, historical mistrust, and administrative neglect. This looseness has exacted a heavy toll. The unrestricted movement of people and goods has drained Pakistan’s fiscal capacity, undermined law enforcement, and allowed illicit trade in currency, fuel, narcotics, and commodities to flourish.

Estimates suggest that informal trade across the Pakistan-Afghanistan frontier exceeds $2.5 billion annually, while formal bilateral trade has sharply declined from nearly $2.7 billion in 2012 to less than $1.2 billion today. The fall has coincided with a surge in smuggling of food commodities including staples such as wheat flour, Basmati rice, sugar, vegetables, ghee, fertiliser, and petroleum products, which not only distorts domestic prices, often leading to food inflation, but also deprives the exchequer of billions in duties, when goods are smuggled into Pakistan.

Every truckload of untaxed goods crossing the frontier is a silent strike against Pakistan’s industries and economic sovereignty. It widens the fiscal deficit, feeds inflation, and erodes confidence in the state’s ability to regulate its borders.

From buffer zone to economic corridor

The Taliban-led Afghan government’s recent statements, particularly those of Deputy Prime Minister Mullah Abdul Ghani Baradar, highlight Kabul’s willingness to expand trade ties beyond Pakistan — with China, India, Iran, and the Central Asian Republics. This shift, combined with the development of Afghanistan’s rail connectivity with China via Uzbekistan, threatens to marginalise Pakistan’s traditional role as Afghanistan’s main transit route to the sea.

In 2023-24, Afghanistan’s total trade volume through Pakistan under the Afghan Transit Trade Agreement (ATTA) fell to $1.8 billion, a steep decline from $4 billion in earlier years. Pakistan’s exports to Afghanistan — primarily pharmaceuticals, cement, food items, and textiles – have also dropped by nearly 60% in a decade. India, Iran, and Central Asian states have filled the vacuum through alternative corridors.

Yet, this loss is reversible, if Pakistan redefines its western border not as a line of division but as an axis of connectivity. With effective border management, joint economic zones, and customs integration, the Durand Line can become a regulated trade corridor that boosts formal commerce, raises revenue, and stabilises the frontier region.

Security through economy, not exclusion

Pakistan’s instinctive response to border volatility has often been enhancing security – fences, patrols, and closures. While border fencing remains essential, especially against cross-border terrorism, it must now evolve into a “smart border” model that integrates surveillance with trade facilitation.

Border regions thrive not on barbed wire alone but on balanced economic ecosystems. Chaman, Torkham, and Ghulam Khan could be developed as Special Border Economic Zones (SBEZs) under joint administration, where regulated trade replaces smuggling and legal movement replaces illegal crossings.

In such zones, both countries could benefit from shared customs terminals, bonded warehouses, and simplified transit procedures. The model already exists in other regions — from Iran’s border markets with Turkmenistan to China’s integrated economic enclaves with Asean nations.

Who suffers if trade ends?

The reality is that Pakistan and Afghanistan are economically interdependent despite political friction. Afghanistan depends on Pakistan for food security, energy supplies, and medical products. Nearly 70% of Afghanistan’s essential pharmaceuticals and over half of its processed food imports come from Pakistan.

If trade halts, Pakistan’s exporters — particularly small and medium industries in Peshawar, Faisalabad, and Karachi — would lose a natural market of nearly 40 million consumers. But Afghanistan would suffer more severely, as it lacks alternative land routes for many basic imports and continues to face chronic shortages of fuel, wheat, and medicine.

For Pakistan, cutting trade ties or imposing broad restrictions would mean losing not just a market but also influence — at a time when regional powers are vying to shape Kabul’s orientation. Economic disengagement creates a vacuum that others are ready to fill.

The fate of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline also hinges on a stable, cooperative frontier. The 1,800- kilometre project — envisioned to bring 33 billion cubic metres of gas annually to South Asia — cannot proceed without security and mutual trust along the Pakistan-Afghanistan corridor.

Similarly, Pakistan’s dream of accessing the Central Asian Republics (CARs) via Afghanistan depends on open, predictable transit routes. If Pakistan closes its border or continues treating it solely as a security barrier, it risks being bypassed by alternative corridors under China’s Belt and Road Initiative (BRI), such as the China-Kyrgyzstan-Uzbekistan railway and the Iran-Afghanistan-China corridor.

Reclaiming sovereignty through regulation

The paradox of Pakistan’s border management is that too much informality has weakened sovereignty. True sovereignty lies not in isolation but in control — the ability to monitor, tax, and regulate what crosses one’s frontiers.

The government’s recent decision to curb smuggling through digital scanning, centralised customs monitoring, and inter-agency coordination is a step forward. However, lasting success requires a unified Border Management Authority, empowered to coordinate intelligence, trade, and law enforcement across all agencies.

Moreover, Pakistan must digitise and modernise customs infrastructure, link ports with dry ports in Quetta and Peshawar, and deploy blockchain-based systems for transit tracking. Every legitimate consignment must be traceable; every illegal one interceptable.

A gateway, not a wall

The choice before Pakistan is stark: continue letting its western border bleed through informal trade and insecurity, or turn it into a gateway of controlled prosperity. A border that once symbolised division could instead become the frontline of Pakistan’s economic revival — connecting South Asia to Central Asia, and the Arabian Sea to the steppes beyond the Amu Darya.

To draw the line, Pakistan must first redefine it — not as a barrier but as a boundary of purpose, where sovereignty, security, and commerce converge.

The writer is a former vice president of KCCI, commodities and international trade expert



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Billions to be paid! US starts refund process for Trump tariffs: Can Indian exporters claim? – The Times of India

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Billions to be paid! US starts refund process for Trump tariffs: Can Indian exporters claim? – The Times of India


To receive repayments, importers in the US are required to submit claims which include shipment details, applicable tariff classifications. (AI image)

The US government has rolled out a system to facilitate refunds of over $166 billion from tariffs introduced by Donald Trump and later invalidated by the US Supreme Court. In February, the court struck down a broad set of reciprocal tariffs, delivering a significant setback to a central pillar of Trump’s economic agenda and paving the way for repayments.On Monday, US Customs and Border Protection announced that the first phase of its refund-processing platform is now operational, allowing importers and customs brokers to begin filing claims to recover the duties they had paid.The agency had earlier estimated in March that more than 330,000 importers may qualify for reimbursements on duties or deposits linked to over 53 million shipments. In its initial rollout, the platform covers about $127 billion in duty payments eligible for electronic refunds.

Tariff refunds What US Customs and Border Protection has said

The process to return reciprocal tariff payments starts on April 20 through a newly launched online platform, CAPE (Consolidated Administration and Processing of Entries), operated by US Customs and Border Protection.This move follows a February 20, 2026 judgment by the US Supreme Court, which ruled that tariffs introduced by Donald Trump were unlawful. The court found that these duties had been imposed under the International Emergency Economic Powers Act without adequate legal backing.Also Read | Iran has closed Strait of Hormuz completely: What does this mean for India’s crude oil, LPG, LNG supplies?The tariffs impacted a wide range of exports from countries including India. To receive repayments, importers in the US are required to submit claims which include shipment details, applicable tariff classifications and proof of payment. Once approved, these refunds along with interest are expected to be processed within 60 to 90 days. Eligibility is limited to those who originally paid the tariffs, primarily US importers and businesses.The total amount to be refunded is estimated at around $166 billion, with nearly $12 billion tied to Indian goods.The tariff structure began at 10% on April 2, 2025, before escalating quickly. Duties on Indian goods increased to 25% by August 7, 2025, and further to 50% by August 28, remaining at that level until early February 2026. On February 6, 2026, rates were lowered to 18% following negotiations. However, the Supreme Court’s ruling later that month nullified the entire regime, effectively rendering the tariffs void and paving the way for refunds.

What it means for India

Exporters and end consumers are not permitted to file claims directly, although some companies, such as FedEx, may opt to pass on the refunded amounts at their discretion.According to Global Trade Research Initiative (GTRI), around 53% of India’s shipments to the US, which largely comprises textiles and apparel, were subject to higher tariffs. This makes them the largest contributors to the refund pool. Of the nearly $12 billion tied to Indian exports, textiles and apparel are estimated to account for around $4 billion, followed by engineering goods with a similar share and chemicals contributing about $2 billion, while other sectors make up the remainder.However, what is important to understand is that these refunds will not flow directly to Indian exporters. The payments are meant only for US importers who bore the tariff burden.Also Read | Explained: On way to 4th largest, how India slipped to 6th rank & what it means for 3rd largest economy dream“Payments go only to US importers, and exporters have no legal right to claim them. Indian exporters, therefore, have no direct legal route to claim refunds,” explains Ajay Srivastava, founder of GTRI.Hence, any potential recovery of these refunds will depend on commercial discussions. Exporters will need to actively engage with their US counterparts to negotiate a share of the refunded duties, particularly in cases where earlier pricing factored in tariff costs. GTRI explains that this can be done by reopening contracts, adding rebate-sharing clauses, asking for price revisions or credit notes, and using invoices and tariff data to show how costs were absorbed. “Exporters with stronger bargaining power, especially in textiles and engineering goods, may secure better terms in future orders,” the think tank says.Industry bodies such as the Apparel Export Promotion Council, Engineering Export Promotion Council of India and Chemexcil can also assist exporters with guidance on contract renegotiation and sector-specific approaches, it adds.



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