Pak-Afghan Dyadic Trade and Peacebuilding

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