Abstract:
The purpose of this research is to critically explore the relationship between trade of goods and
services with the uprise of conflict in the case of Pakistan and Afghanistan during the last 20 years
(1990-2019). It is a time-series analysis which makes use of both qualitative tools including semistructured
interviews
and
an
in-depth
thematic
analysis
and
quantitative
tools
including
graphical
analysis
of past
trends
associated
with
trade
balance
and
prevalence
of terrorism
in
both
countries
accompanied
with
a
simple
linear
regression
analysis
that
helps
in
identifying
the
significance
of
the
correlation
between
trade
and
conflict
in
both
Pakistan
and
Afghanistan.
The
results
indicate
that
there
indeed
exists
a
negative
relationship
between
dyadic
trade
and
the
likelihood
of
uprise
of
conflict in the case of Pakistan and Afghanistan. Furthermore, trade and commerce can be
considered a significant tool of peacebuilding for both Pakistan and Afghanistan and could assist
in reducing the opportunity costs of war in the near future. There are numerous dimensions that
were uncovered through the thematic analysis including the key role of power politics in
determining the trend of Pak Afghan trading and understanding the importance of Afghanistan
being economically dependent on Pakistan. In addition to this, the results also suggested the effect
Taliban Regime has caused in implementing hindrances in trade due to their prejudice against the
Border Crossing Points mentioned in the APTTA. Finally, this research also sheds light on the
notion that the residents of Tribal Areas and Borderland Areas heavily rely on Pak Afghan Dyadic
Trade. In alignment with this, the informal economies that are formed although cause damage to
the economies of both countries but are naturally favored by the local residents and play a huge
role in sustaining peacebuilding in Pakistan and Afghanistan
