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Pakistan-Afghanistan Trade Plummets 58% Amid Border Closures

Pakistan's exports to Afghanistan have been more than halved in the first seven months of the current fiscal year, plummeting from over $550 million to nearly $230 million. The sharp decline is attributed to the closure of border crossings since October following clashes between Pakistani forces and the Taliban. The closure has severely impacted Pakistan's Khyber Pakhtunkhwa province, causing a 53% drop in revenue collection from a key infrastructure cess. Taliban officials are urging traders to diversify supply routes and reduce reliance on the Pakistan transit corridor to avert local shortages.

Key Points: Pakistan's Exports to Afghanistan Halve Amid Border Shutdown

  • Exports fell from $550M to $230M
  • Border shut since October after clashes
  • Khyber Pakhtunkhwa revenue down 53%
  • Taliban urges alternative trade routes
3 min read

Pakistan's exports to Afghanistan witness decline in first seven months of current fiscal year

Pakistan's exports to Afghanistan drop from $550M to $230M in 7 months due to closed borders and political tensions, causing major revenue losses.

"prolonged border disruption was causing serious revenue, economic, and employment consequences - Muzammil Aslam"

Kabul, Feb 25

Pakistan's exports to Afghanistan reduced sharply in the first seven months of the current fiscal amid trade disruptions and political tensions, local media reported on Wednesday.

According to the official data from the State Bank of Pakistan, exports to Afghanistan from Pakistan reduced by more than half compared to the same period last year. The value plunged from more than 550 million dollars to nearly 230 million dollars from July to January period, Afghanistan's leading news agency Khaama Press reported.

Border crossings between Pakistan and Afghanistan have remained shut since October last year, halting bilateral trade between two nations. The border closures came after clashes erupted between Pakistani forces and the Taliban that lasted for eight days. The border crossings have not reopened despite several rounds of talks held between officials of Afghanistan and Pakistan, aimed at easing tensions.

Taliban has urged traders and pharmaceutical importers to take up alternative trade routes and diversify supply sources to avert shortages in local markets, Khaama Press reported. Taliban officials stressed the need to reduce reliance on a single transit corridor and urged businesses to consider regional partnerships to continue stable supplies of essential goods.

Earlier in January, local media reported that Khyber Pakhtunkhwa province of Pakistan witnessed a 53.02 per cent decline in revenue due to the continued closure and suspension of trade at the Pakistan-Afghanistan border since October last year, resulting in provincial government seeking intervention from the federal government, local media reported.

The Pakistan-Afghanistan border closure has caused revenue losses for Khyber Pakhtunkhwa as the collection of Infrastructure Development Cess (IDC) reduced to Pakistani Rupees (PKR) 3.48 billion from PKR 7.42 billion during the first seven months of the current fiscal year over the corresponding period of 2025, Pakistan's leading daily Dawn reported.

Khyber Pakhtunkhwa Chief Minister's financial adviser, Muzammil Aslam, wrote a letter to Pakistan's Commerce Minister Jam Kamal, requesting an urgent meeting of provincial and federal stakeholders. Aslam stated that prolonged border disruption was causing serious revenue, economic, and employment consequences for Khyber Pakhtunkhwa. He stated that initial disruption in cess collection was caused due to court stay order, which was resolved in November.

Recovery efforts were made, however, those efforts did not produce results as cross-border trade remained suspended. He said that exporters and traders were facing difficulty as their consignments and payments are stuck across the border and mentioned that many businesses were not able to meet their statutory cess obligations due to the trade suspension between Pakistan and Afghanistan.

- IANS

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Reader Comments

P
Priya S
While the decline is sharp, maybe this will push Afghanistan to diversify its trade partners more within the region. Over-reliance on a single corridor is never good for long-term economic stability.
A
Aman W
The revenue loss figures for KP are staggering. From PKR 7.42 billion to 3.48 billion! This isn't just a border issue, it's a crisis for that province's development funds. The federal government needs to step in urgently.
S
Sarah B
Reading from an Indian perspective, it's a reminder of how interconnected regional trade is. When major routes between neighbors get blocked, everyone loses – businesses, workers, and government revenues. A lesson in diplomacy and economic pragmatism.
V
Vikram M
The Taliban urging traders to find alternatives is interesting. Might open up opportunities for other regional players. But the human cost first – hope the stuck consignments and payments are resolved for the sake of the small businesses.
K
Karthik V
With all due respect, the article focuses heavily on Pakistan's losses. What about the impact on ordinary Afghans? Pharmaceutical imports are mentioned – medicine shortages are a serious humanitarian concern that goes beyond trade numbers.

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