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Border closures and Middle East tensions affect auto trade

Kathmandu. The import and trade of auto parts in Spin Boldak, a commercial hub on Afghanistan’s southern border, has come to a standstill due to the regional conflict. The long-running trade in Kandahar province has been severely affected by the closure of the border with Pakistan and tensions in the Middle East.

The import route was blocked when the border was almost completely closed since October following cross-border violence with Pakistan. Alternatives are being transported via Iran’s Bandar Abbas and through the United Arab Emirates, but those routes have been hit since the latest Middle East war.

According to businessmen, parts from countries including Japan used to go to Spin Boldak via Pakistan, where vehicles were assembled and repaired. But now the cost of transportation has increased drastically and the supply chain has been disrupted.

Traders say the escalating tensions in the Middle East have affected trade routes around Iran and transport via the Strait of Hormuz, deepening the crisis.

According to the transport company, delays are increasing at Jebel Ali port, the UAE’s main commercial hub. It has also affected the regular supply chain between Japan and the UAE.

According to local traders, the cost of containers has increased from two thousand US dollars to eight thousand dollars, and many containers are stuck in UAE and Japan.

The World Bank has warned that Afghanistan is at high risk of external economic shocks, adding that the import-export imbalance is widening.

Thousands of workers and traders working in the Spin Boldak market have been affected. Many people are at risk of losing their jobs after car manufacturing, repair and sales activities stopped.

Entrepreneurs have expressed hope that the international waterways and border routes will be reopened after the regional tensions are resolved.

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