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Pakistan's Frozen Afghan Border Trade Bleeds Billions, Sparks Economic Crisis

The prolonged closure of key border crossings between Balochistan and Afghanistan has triggered a severe economic crisis, with Punjab alone suffering monthly losses exceeding Rs80 billion. Thousands of traders remain stranded as perishable goods rot and exports of cement, medicines, and construction materials are paralyzed. Business leaders condemn the government's failure to separate trade from political disputes, warning of cascading damage to transport, logistics, and investor confidence. The crisis also blocks Pakistan's vital gateway to Central Asian markets, intensifying inflationary pressures and public frustration amid calls for immediate diplomatic intervention.

Key Points: Pakistan's Border Closure Crisis: Billions Lost, Trade Paralyzed

  • Punjab loses Rs80bn monthly
  • 3,000 traders stranded
  • Perishable goods rotting at border
  • Exports to Central Asia blocked
2 min read

Pakistan's border mismanagement bleeds economy as Balochistan-Afghan trade remains frozen

Balochistan-Afghan border closures cost Punjab Rs80bn monthly, stranding traders and rotting goods. Experts warn of deepening economic crisis and policy failure.

"The closures have exposed the state's inability to separate economic cooperation from political and security disputes. – The Balochistan Post"

Balochistan, January 3

Closures of border crossings between Balochistan and Afghanistan have triggered a deepening economic crisis, with Punjab alone reportedly losing more than Rs80 billion every month due to stalled trade. Business leaders warn that Pakistan's failure to ensure stable cross-border commerce is compounding inflationary pressures and eroding already fragile investor confidence, as reported by The Balochistan Post.

According to The Balochistan Post, the Lahore Chamber of Commerce and Industry, the shutdown of key trade routes following border tensions last October has effectively paralysed bilateral trade. Industries dependent on the Afghan market, particularly those in the cement, agricultural chemicals, and food exports sectors, have suffered significant losses.

Chamber representatives said the closures have exposed the state's inability to separate economic cooperation from political and security disputes, a pattern that has repeatedly hurt Pakistan's economy.

Thousands of traders on both sides of the border remain stranded. Estimates suggest nearly 3,000 traders, including a large number from Pakistan, are stuck due to the prolonged closures. Truckloads of fresh fruits, dry fruits and other perishable goods imported from Afghanistan are reportedly rotting at border points, inflicting massive financial damage.

At the same time, Pakistan has been unable to export vegetables, medicines and construction materials, further weakening its export sector

Trade experts say the disruption has rippled across the transport and logistics industries, leaving drivers, loaders and small operators struggling to survive.

They argue that the Afghan border is not only vital for bilateral trade but also serves as Pakistan's gateway to Central Asian markets. With exports already heavily reliant on neighbouring countries, the continued halt is intensifying economic stress, reducing incomes and fuelling public frustration, as highlighted by The Balochistan Post.

Criticism has also been directed at the federal government and revenue authorities for failing to offer relief to affected traders. Business groups complain that consignments, including agricultural produce meant for Afghanistan, have perished without compensation, while the transport sector slides toward a financial breakdown.

The lack of emergency measures, they say, reflects policy paralysis rather than unavoidable circumstances. Calling for immediate diplomatic engagement, trade leaders have urged Pakistan and Afghanistan to reopen border crossings without further delay, as reported by The Balochistan Post.

- ANI

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Reader Comments

S
Shreya B
Very sad to hear about the traders stuck and the produce rotting. It's the small truck drivers and loaders who suffer the most in these situations. While we must always be vigilant about security, there has to be a way to keep essential trade flowing. Hope for a swift and humane resolution.
A
Arjun K
This highlights why India's focus on developing alternative trade routes like INSTC is so crucial. Over-reliance on unstable borders and regimes is a strategic economic weakness. Pakistan's loss is a lesson for the whole region on the importance of diversified trade partnerships.
P
Priya S
The report mentions Balochistan... the people there have suffered for decades due to such policies from Islamabad. First, they don't get a fair share of resources, and now their crucial cross-border trade is frozen. My heart goes out to the common people caught in this. 🙏
M
Michael C
Watching from outside, it's clear that regional connectivity is key for South Asia's growth. This kind of disruption hurts everyone in the long run – Pakistan, Afghanistan, and by extension, the economic potential of the entire neighbourhood. Hope cooler heads prevail soon.
V
Vikram M
While the economic pain is real, we in India cannot ignore the security dimension. That region is volatile. However, the "policy paralysis" mentioned is telling. A functional state should be able to manage both security and trade. This failure ultimately punishes the poorest the most.

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