Afghanistan -

Overview

November

2014

Key Country Statistics2013

GDP $20.72 billion

Population 30.55 million

GDP growth rate 4%

GDP per capita $678

GDP per capita growth 1.80%

FDI, net inflow $69.3 million

Inflation 7.60%

Export of goods & services as a percentage of

GDP6%

Trade (exports + imports of goods and services)

as a percentage of GDP53%

Source: World Bank 2

Afghan Trade Statistics

• Afghanistan’s total bilateral trade in 2013 was

$7 billion

• Afghanistan is part of the following trade

agreements:

• South Asian Association for Regional Cooperation

(SAARC)

• Economic Cooperation Organization (ECO)

• India Afghanistan Preferential Trade Agreement

(IAPTA)3

Trade Statistics

4

Trade Balance

-$8,000

-$6,000

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

2008 2009 2010 2011 2012 2013

Mil

lio

ns

Total Exports Total Imports Trade Balance

2008 2009 2010 2011 2012 2013

USD Million

Total Exports 540 403 388 376 429 705

Total Imports 3,020 3,336 5,154 6,390 6,205 6,591

Trade

Balance-2,480 -2,933 -4,766 -6,014 -5,776 -5,886

Source: Trade Maps

5

Top Import Partners

2008 2009 2010 2011 2012 2013

USD Million

Pakistan 482 307 597 878 883 1,998

USA 18 45 78 91 1,493 1,410

India 105 106 113 104 118 514

Russia 97 198 181 804 938 484

China 429 360 704 577 714 329

Kazakhstan 152 291 208 333 321 249

Turkey 51 71 109 138 290 228

Germany 65 144 422 244 258 221

Thailand 17 17 40 36 144 184

United Kingdom 10 16 32 24 31 104

The top two importing partners of Afghanistan are Pakistan and USA that accounted for

30.3% and 21.4% of imports in 2013. India accounted for 7.8% of imports, Russia 7.3%

of imports, and China for 5% of imports. None of the remaining trading partners

accounted for more than 4% of imports individually. Source: Trade Maps

6

Top Export Partners

2008 2009 2010 2011 2012 2013

USD Million

Pakistan 264 191 151 181 201 308

India 132 76 65 70 70 213

USA 2 17 4 4 34 41

Finland 6 5 3 6 13 17

Germany 0.7 0.8 1.9 1.5 1.6 17

Russia 37 26 30 33 11 14

Turkey 18 6 35 11 7 11

China 2 4 12 6 5 10

France 0.13 0.15 0.26 0.17 4 8

Spain 2 0.5 0.13 0.04 4 8

The top two exporting partners for Afghanistan are Pakistan and India that accounted

for 43.6% and 30.2% of exports in 2013. USA accounted for 5.8% of exports. None of

the remaining trading partners accounted for more than 3% of exports individually

Source: Trade Maps

7

Top 5 Afghan imports over the last

five years2009 2010 2011 2012 2013

USD Million

Vehicles other than railway, tramway 537 1,004 745 722 755

Electrical, electronic equipment 128 207 242 9 496

Mineral fuels, oils, distillation products,

etc788 1,075 2,222 1,517 490

Optical, photo, technical, medical, etc

apparatus58 89 56 0 441

Machinery, nuclear reactors, boilers,

etc95 201 209 0 403

Afghanistan’s top import of vehicles accounted for 11.5% of total imports in 2013.

Electrical & Electronic equipment accounted for 7.5%, mineral fuels for 7.4%, optical,

photo, technical and medical accounted for 6.7%, and machinery, nuclear reactors &

boilers accounted for 6.1%.

Source: Trade Maps

8

Top 5 Afghan exports over the last

five years2009 2010 2011 2012 2013

USD Million

Edible fruit, nuts, peel of citrus fruit,

melons204 136 127 98 200

Cotton (not carded or combed)* 0.3 18 5 0 127

Mineral fuels, oils, distillation products,

etc0.4 0 2 0 56

Edible vegetables and certain roots and

tubers12 16 8 0 46

Iron and steel 0 0 0 0 42

Afghanistan’s top export of fruits & nuts accounted for 28% for total exports in 2013 and

raw cotton accounted for 18%. As per a 2013 report by the Afghanistan Investment

Support Agency on Textile & Clothing Industry in Afghanistan, 70% of cotton grown in

Afghanistan is exported to regional countries. Mineral fuels accounted for 8% of exports,

vegetables accounted for 6% and so did iron and steel.

Source: Trade Maps

9

* A possible reason for the sudden increase in cotton exports could be the efforts of foreign agriculture

experts that encouraged the production of cotton rather than opium. Lack of a domestic market at home

resulted in export of raw cotton. (Source: Afghan farmers return to opium as other markets fail. BBC)

Pakistan –

Afghanistan Trade

10

Pak - Afghan Trade Overview

• Pakistan Afghanistan bilateral trade was $2.3billion in 2013

• Afghanistan accounted for 8% of Pakistan’s totalexports in 2013 and 0.7% of Pakistan’s totalimports in 2013

• Afghanistan Pakistan Transit Trade Agreement(APTTA) allows Afghan goods freedom for transittrade through Pakistan

• In a recent article in Dawn, Pakistan andAfghanistan resolved to expand bilateral trade to$5 billion in two to three years. 11

ATTA/APTTA

• Afghanistan Transit Trade Agreement (ATTA) came into affect in 1965

to allows Afghan products freedom of transit through Pakistan

• ATTA was updated under Afghanistan Pakistan Transit Trade

Agreement in 2010

• Differences between ATTA and APTTA are:

• Afghan exporters are allowed to use their own trucks to carry exports to

Pakistani sea ports and to the Wagah border

• Increases number of border crossing points from (1) Peshawar-Torkham

and vice versa; and (2) Chaman-Spin Baldak and vice versa under ATTA

to Peshawar-Torkham to (1) Chaman-Spin Boldak, (2) Ghulam Khan, (3)

Sost-Tashkurgan, (4) Port Qasim, (5) Karachi, and (6) Gwadar port

• Provides for Afghan exports to India using the land border between

Pakistan and India but not vice a versa 12

Top 10 products in 2013 under

APTTAHS Code DESCRIPTION USD Million

151190 Palm oil and its fractions not chemically refined 43

151620 Veg fats & oils & their fractions 39

90240 Black tea in packages exceeding 3 kg 37

580190 Woven Pile Fabric & chenille fabric 22

540720 Woven fab obtained from strip and the like 19

851718 Telephone sets 15

851762

Machines for the reception, conversion and

transmission or regeneration 12

730890 Structures & parts of structures 11

151790

Edible mx/prep of animal/veg fats & oils/of

fractions ex hd No 15.16 10

580632 Narrow woven fabrics of man-made fibres, nes 1013

Source: Pakistan Customs

Pak-Afghan Trade Balance

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mil

lio

ns

Pak's Imports from Afghanistan Pak' Exports into Afghanistan Trade Balance

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD Million

Pak's

Imports 31 49 53 65 89 85 121 138 200 235 308

Pak'

Exports 408 466 1,065 992 838 1,448 1,374 1,685 2,660 2,099 1,998

Trade

Balance377 417 1,012 927 749 1,363 1,253 1,547 2,460 1,864 1,690

Source: Trade Maps

14

Top ten exports from Pakistan to

AfghanistanProduct label Exported Value 2013

USD Million

Salt, sulphur, earth, stone, plaster, lime and cement 282

Sugars and sugar confectionery 202

Milling products, malt, starches, inulin, wheat gluten 196

Animal, vegetable fats and oils, cleavage products, etc 152

Cereals 145

Edible vegetables and certain roots and tubers 142

Edible fruit, nuts, peel of citrus fruit, melons 108

Articles of iron or steel 108

Dairy products, eggs, honey, edible animal product nes 0.95

Plastics and articles thereof 0.93

Source: Trade Maps

15

Top ten imports into Pakistan from

AfghanistanProduct label Exported Value 2013

USD Million

Cotton (not carded or combed)* 127

Mineral fuels, oils, distillation products, etc 56

Iron and steel 42

Edible fruit, nuts, peel of citrus fruit, melons 34

Edible vegetables and certain roots and tubers 25

Salt, sulphur, earth, stone, plaster, lime and cement 16.5

Raw hides and skins (other than furskins) and leather 2.7

Machinery, nuclear reactors, boilers, etc 2

Wood and articles of wood, wood charcoal 0.62

Dairy products, eggs, honey, edible animal product nes 0.42

Source: Trade Maps

16

South Asia Association for

Regional Co-operation

(SAARC)

17

Overview• The South Asia Association for Regional Co-operation (SAARC)

comprises of Afghanistan, Bangladesh, Bhutan, India, Maldives,

Nepal, Pakistan, and Sri Lanka.

• It was established in December1985 by India, Pakistan,

Bangladesh, Sri Lanka, Nepal, Maldives and Bhutan and in April

2007, Afghanistan became its eighth member

• It is an economic and political organization in South Asia that

aims to accelerate the process of economic and social

development in member states through joint action in the

agreed areas of co-operation.

• SAARC Free Trade Area (SAFTA) was signed in 1997

• Total bilateral trade between SAARC and Afghanistan in 2013 was

$3 billion 18

Afghanistan’s Contribution to Intra-

SAARC Trade

19

Rest of SAARC

85%

Afghanistan

15%

2012

Rest of SAARC

87%

Afghanistan

13%

2013

2012 2013

USD Billion

Rest of Intra -SAARC Trade 16.71 19.49

Afghan Trade within Intra-SAARC Trade 2.89 3.032

Source: Trade Maps

The following data is missing:

• Bangladesh’s data for 2012 & 2013 for Sri Lanka, Nepal, Maldives, Bhutan & Afghanistan

• Sri Lanka’s data for 2013 for Nepal, Maldives & Bhutan

• Nepal’s data for 2012 & 2013 for Bhutan, Afghanistan & Maldives

• Maldives's data for 2012 & 2013 for Bhutan & Afghanistan

Economic Cooperation

Organization (ECO)

20

Economic Cooperation

Organization• The Economic Cooperation Organization was established in

1985 as a trilateral organization of Iran, Pakistan and Turkey

• Afghanistan, along with Azerbaijan, Kazakhstan, Kyrgyzstan,

Tajikistan, Turkmenistan and Uzbekistan joined ECO in May

1992

• It aims to promote multi dimensional regional cooperation

with a view to creating conditions for sustained

socioeconomic growth in the Member States

• In 2003, the organization developed ECO Trade Agreement

(ECOTA) to promote intra and inter-regional trade. ECOTA’s

objective is to remove trade barriers and establish a Free

Trade Area21

Afghanistan’s Contribution to

Intra-ECO Trade

22

Intra-ECO

Trade

88%

Afghanistan

12%

2012

Intra-ECO

Trade

86%

Afghanistan

14%

2013

2012 2013

USD Billion

Rest of Intra -ECO Trade 16.71 19.49

Afghan Trade within Intra-ECO Trade 2.89 3.032

Source: Trade Maps

The following data is missing:

• Azerbaijan’s data for 2013 for Iran, Kyrgyzstan, Tajikistan, Turkmenistan & Uzbekistan

• Kyrgyzstan's data for 2013 for Iran, Tajikistan, Turkmenistan & Uzbekistan

• Tajikistan’s data for 2012 & 2013 for Iran, Uzbekistan & Afghanistan

• Turkmenistan's data for 2012 & 2013 for Iran, Uzbekistan, & Afghanistan

India Afghanistan

Trade

23

Overview• Total Bilateral Trade between the two countries in 2013

was $727 million

• India Afghanistan signed a India Afghanistan

Preferential Tariff Agreement (IAPTA) in 2003

• Preferential tariffs granted to India by Afghanistan for

tea, antisera and modified immunological products,

Ayurvedic, Homeopathic, and other medicines, refined

sugar, and cement. Total of 8 tariff lines at 6 digit HS

Code level

• Preferential tariffs granted to Afghanistan by India for

raisins, dried fruits, fresh fruits, Asafeotida, and

precious and semi-precious gems. Total of 23 tariff lines

at 6 digit HS Code level

24

Trade Balance

-$600

-$400

-$200

$0

$200

$400

$600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mil

lio

ns

Afghan imports from India Afghan exports to India Trade Balance

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD Million

Afghan imports

from India 21 40 115 168 148 171 218 365 472 393 505 476 514

Afghan exports

to India 20 17 27 53 54 47 76 133 121 144 120 80 213

Afghan Trade

Balance-0.9 -32 -88 -115 -94 -124 -142 -232 -351 -250 -384 -396 -300

Source: Trade Maps (Mirror Data)

25

Comparison of Afghan IAPTA Imports vs total

Afghan Imports from India

$0

$100

$200

$300

$400

$500

$600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mil

lio

ns

Afghan IAPTA imports Total Afghan Imports from India

Source: Trade Maps (Mirror Data)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD Million

Imports

under

IAPTA

3 7 20 18 22 29 48 60 48 23 35 25 34

Total

Imports

from India

21 50 115 168 148 171 219 365 472 393 505 477 514

26

$0

$50

$100

$150

$200

$250

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mil

lio

ns

Afghan IAPTA exports Total Afghan Exports to India

Comparison of Afghan IAPTA Exports vs total

Afghan Exports to India

Source: Trade Maps (Mirror Data)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD Million

Exports

under

IAPTA

14 15 22 49 47 44 72 125 110 129 103 69 165

Total

Exports

from India

20 17 27 53 54 47 76 133 121 144 120 80 213

27