The commercial cost of Afghan intransigence

Afghan border closure slashes Pak-Afghan trade by 74% as businesses suffer.

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Oct 19, 2026

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The commercial cost of Afghan intransigence

Afghan border closure slashes Pak-Afghan trade by 74% as businesses suffer.

In brief

Afghan border closure slashes Pak-Afghan trade by 74% as businesses suffer. Pak-Afghan trade dropped from $1.3bn in FY24-25 to $358m in FY25-26 due to border closures. Originally reported by Dawn.

Torkham border terminal

Goods trucks remain parked at the Torkham border’s terminal since its closure amid tensions between Pakistan and Afghanistan.

“Goods trucks remain parked at the Torkham border’s terminal since its closure amid tensions between Pakistan and Afghanistan., Photo by the writer”

Trade decline

Bilateral trade fell from $1.3 billion in FY24-25 to $358 million in FY25-26, a 74% drop.

Border closures

Border closures

Torkham, Kharlachi, Ghulam Khan, Angoor Adda, and Chaman border crossings remain closed for trade.

Pharmaceutical impact

Pharmaceutical exports to Afghanistan dropped from $130 million in FY23-24 to near zero.

Potato market crisis

Up to 50 trucks of potatoes used to cross daily; border closure reduced crop cultivation by almost half.

Transport sector collapse

Transporters sold three of five trucks due to border closure, with KP transport nearly ruined.

Economic impact

KP businesses face higher logistics costs and reduced economic opportunities due to border closure.

Junaid Altaf's view

KP businesses need secure borders, regulated trade, competitive industry, and shared prosperity.

Malik Sohni's view

Potato prices will rise as demand increases against limited supply due to border closure.

Fuad Ishaq's view

Security comes first; cutting ties with Afghanistan reduces burden on hospitals and schools.

Trade corridor potential

KP could become a stronger pharmaceutical production and export centre with trade access.

Loss of market access

Pakistani potato exports to Afghanistan dropped by 50% after border closure.

Financial impact

Businesses lost Rs180 million when potato prices crashed after border closure.

Trade corridor decline

Afghan Transit Trade dropped from 89,000 containers valued at $5 billion to 11,592 containers worth $367 million.

The essence

Pak-Afghan trade dropped from $1.3bn in FY24-25 to $358m in FY25-26 due to border closures.

Read the original on Dawn

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