The annual trade volume between Pakistan and Afghanistan has dropped sharply from $2.5 billion to just $1 billion, as ongoing border closures and inconsistent trade policies continue to strain economic ties between the two neighbors.
Zia-ul-Haq Sarhadi, Vice President of the Pakistan-Afghanistan Joint Chamber of Commerce, described the decline as “deeply concerning,” warning that Pakistan’s broader regional trade ambitions, including access to Central Asian markets, depend on a stable trading relationship with Afghanistan.
For years, Pakistan has exported essential goods to Afghanistan, including cement, steel bars, pharmaceuticals, vegetables, flour, and sugar, while importing fresh produce and other agricultural products in return.
However, persistent challenges and growing diplomatic friction between the two countries have disrupted this exchange.
A key flashpoint occurred in February when heightened tensions prompted a closure of the Pakistan-Afghanistan border.
The shutdown halted the movement of goods and people, causing significant losses in tax revenues for both nations and stalling cross-border commerce.
“The impact wasn’t just on trade numbers,” Sarhadi noted. “From Karachi’s ports to the Torkham crossing, thousands of laborers and transport workers were left jobless for days. The ripple effects hurt the most vulnerable segments of society.”
Trade experts and business leaders are urging both Islamabad and Kabul to adopt consistent and transparent trade policies, emphasizing that long-term economic cooperation is vital not only for mutual economic benefit but also for fostering regional peace and stability.
They warn that without a sustained diplomatic and economic dialogue, both countries risk further isolation and economic stagnation, especially at a time when the region faces broader geopolitical and security challenges.
