Khanate
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Both have been tried, neither has worked. Pakistan was, for the longest time, Afghanistan's single largest trade partner (it still is, if you include the black economy), it still remains Afghanistan's second largest trade partner, after Iran.
The routes connecting Pakistan and Afghanistan are in a dilapidated state and have been that way for decades. It highlights the fact that Pakistan does not see short and medium-term value in its trade with Afghanistan and our focus is elsewhere (CPEC). This, of course, is a realistic assement but if we are to counter India in Afghanistan then a statement has to be made.
Pakistan also takes in literally thousands of Afghan students into Pakistani colleges and universities.
True.
It is undeniable that the government of Pakistan has absorbed the education costs of thousands of students from Afghanistan. It was envisioned that education would act as a moderating force however this has proven to be too optimistic which is why the admission of undergraduate students from Afghanistan should be reduced. The focus should be shifted to post-graduate studies because the impact can be effectively gauged within a short period.
Everyone knows that most Afghan politicians are corrupt and take bribes, it's an open secret. In fact, former president Karzai was known to get weekly briefcases from the CIA, full of cash.
Bribing has bought loyalty within Afghanistan for literally hundreds of years; Pakistan should considering it lobbying, if bribing is too harsh a term to say.
I understand the landscape of Afghanistan which is why intermediaries (businessmen, traders and wheeler dealers) are ideal if only for the sake of plausible deniability and you need trade for that.