Pakistan, following a two-day trade conference in Kabul, has removed eight items from its list of banned imports headed to Afghanistan. Of the eight, only ball bearings were a key product. Afghanistan uses Pakistan's ports for its imports.

Port charges and import duties are also being sharply reduced for imports headed to Afghanistan. Import duties are being halved and port fees of up to 20% are being eliminated completely.

As many observers noted, the high duties on bearings and the long list of banned goods simply encouraged the already widespread cross-border smuggling operations and counterfeiting. Reducing the tariffs should reduce the chances of goods being smuggled back into Pakistan, which officially consumes approximately USD $230 million in Afghan products each year.

In the trade agreement, Pakistan will also convert all of its $100 million, 5-year, Afghanistan aid package to a grant which does not have to be repaid. Important projects covered by the grant are to rebuild and improve the region's transportation infrastructure, especially cross-border roadways and port access. Pakistan is also providing help to Afghanistan's police, banking and health care sectors.

In May, the Asian Development Bank will sponsor a meeting of trade representatives from Pakistan, Afghanistan, Uzbekistan, Tajikistan and Turkmenistan. The topic will be construction of a shared road, linking Gwadar Port to all of the countries, greatly improving their import and export capabilities