Pakistan can-maker pushes ahead with $110mn Afghanistan plant despite border closure

Pakistan Aluminium Beverage Cans Limited (PABC) is moving forward with plans to establish a multi-million-dollar manufacturing plant in Afghanistan, despite the ongoing border closure since October 2025.

In its annual report released on Friday, the Pakistani can maker noted that the prolonged closure of the Afghan border since October 2025, driven by cross-border terrorism and ongoing military operations, has halted trade with Afghanistan and Central Asian markets.

“A substantial portion of the company’s export sales are either destined for these markets or routed through the Afghan corridor, and this unresolved situation will continue to limit export opportunities and weaken the company’s competitive position until a durable resolution is achieved,” it said.

Moreover, the broader domestic security environment also remains sensitive to counter-terrorism operations and isolated incidents, which may intermittently affect logistics, transportation, operational continuity and consumer sentiment.

“The company continues to advance its announced plan to establish a plant in Afghanistan,” read the report.

Last year, PABC Pakistan announced plans to set up a new $110 million beverage can manufacturing facility in Afghanistan, with a capacity of 1.3 billion cans.

The fighting between Pakistan and Afghanistan has killed scores of people on both sides, with Afghans taking the brunt. Islamabad accuses the Afghan Taliban of harbouring those who launch attacks in Pakistan, although Kabul denies this, calling the militancy its neighbour’s domestic problem.

The company further highlighted that ongoing geopolitical tensions globally, including hostilities in Gaza and other parts of the Middle East, may influence consumer sentiment toward certain multinational beverage brands.

This “could indirectly affect demand for beverage products supplied by the company’s customers,” said PABC.