PABC says ongoing security issues at Chaman denting revenue

Pakistan Aluminum Beverage Cans Limited (PABC) said “ongoing security issues” at Chaman, which has already strangled trade with Afghanistan, may negatively impact the company’s revenue from exports to the neighboring country.

“We wish to inform you that due to ongoing security issues at Chaman, we are experiencing logistical disruptions and a shortage of vehicles for our exports to Afghanistan, which may impact revenue from Afghan exports,” PABC said in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

The company added that it has also witnessed a nearly 25% YoY decline in local order bookings. “We expect a negative impact on our order bookings during the peak season.”

Protests have been ongoing in Chaman since October 2023, with workers and supporters of various political parties and organisations of local traders participating in the sit-in which has strangled bilateral trade between Pakistan and Afghanistan, including transit trade.

In October, last year, the government’s apex committee decided that the current system under which individuals can cross the border using the Afghan national identity card or Tazkira would be replaced and aligned with border-crossing regulations observed with other countries. Following the decision, it was made mandatory to have a valid passport and visa for crossing the border.

The decision, however, was rejected by the locals associated with the trade on both sides of the border, who have demanded a reversal of the new border crossing arrangements.

Days go, Atif Ikram Sheikh, President FPCCI, apprised that the Chaman border had been closed and, thousands of trucks and other vehicles had been stuck under vulnerable, uncertain, and hostile circumstances.

He demanded that the Chaman border be opened immediately to alleviate the sufferings and financial losses of the traders.

Nestled in the heart of a tumultuous region, Chaman border has long been a significant point of interaction between Pakistan and Afghanistan, particularly as a hub for cross-border trade between the two neighbouring countries.

The development comes as Pakistan maintains that Afghan soil has been used by terrorists to conduct attacks within Pakistani territory.

In May, Director General (DG) ISPR Major General Ahmed Sharif said terrorists operating from Afghanistan were involved in the attack on Chinese engineers, which occurred in Khyber Pakhtunkhwa in March.