Pak-Afghan border closure inflicts huge losses to traders

PESHAWAR: Closure of trade between Pakistan and Afghanistan for over three months has inflicted substantial financial losses in billions of rupees at national as well as at regional level where reliance of business community is mainly on cross border commerce and trade.

From export to bilateral trade, transportation business and revenue collection, the financial impact due to halt in Pak-Afghan trade is enormous, badly impacting the economy of the country in general and Khyber Pakhtunkhwa in particular.

These views were expressed by noted businessmen including Senior Vice-President of the Pak-Afghan Joint Chamber of Commerce and Industry Ziaul Haq Sarhadi and former Sarhad Chamber of Commerce and Industry official Manzoor Ellahi.In a joint press statement issued here on Monday, Zia Sarhadi and Manzoor Elahi while sharing an overview of the Pakistan-Afghanistan border closure, said Khyber Pakhtunkhwa is disproportionately affected due to its proximity to the border, ethnic ties with Afghanistan and heavy reliance on cross-border trade.

Over 90 percent of Pakistan’s exports to Afghanistan route through KP Customs stations, primarily from Torkham border post.

The province has suffered an estimated Rs 2.5 billion in export losses from halted shipments of goods like cement, textiles, pharmaceuticals, construction materials and agricultural products.

While under the revenue head, the province has lost nearly Rs 2.5 billion during the first five months of the current financial year due to reduced trade activity and customs collections.

Exporters in KP report over USD 4 million in daily losses, with stranded goods worth billions of rupees, they added.

Perishable items have spoiled, and medicines, raw materials have expired, leading to unsalvageable damage.

Under Afghan transit trade to Central Asia, previously 4,000–5,000 consignments annually has sharply declined, affecting logistics, transport, and related revenues in KPK.

The broader economic consequences of border closure in KP are industrial shutdowns and job losses.

The businessmen claimed that up to 90 percent of KP’s industry depends on Afghan markets for exports and imports.

Prolonged closure risks widespread factory shutdowns, massive unemployment, and threats to regional security amid economic distress, they warned.

Referring to the transport and Labor Sector, they said thousands of truck drivers, laborers, and daily wage workers in border areas have lost income, with markets in Peshawar and other cities falling silent.

Copyright Business Recorder, 2026