Closure of transit trade: Pakistan, Afghan suffer huge economic losses

PESHAWAR: Senior Vice President Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) and Chairman of Dry Port/Railway Standing Committee of Sarhadi Chamber of Commerce and Industry (SCCI), Zia-ul-Haq Sarhadi (Sitara Imtiaz) has said due to blockade of transit trade, Pakistani exporters have lost about USD 225 million in the past eight months.

In a press statement issued here on Thursday, PAJCCI SVP said Afghanistan is the closest and most important market for Pakistani products where full payment is made before delivery of goods.

Pakistan’s annual exports to Afghanistan are about 1.5 billion US dollars and Pakistani exporters have lost about USD 1 billion due to the trade blockade in the past eight months.

Annual exports of Pakistani products to Central Asian countries via Afghanistan are about USD 800 million.

Pakistan imports cotton, pulses and other commodities from Central Asian countries which were possible at a relatively low cost via Afghanistan, but the blockade of transit has significantly increased the cost of imports, Zia added.

He said Pakistan used to earn billions of rupees in customs duties and taxes on imported cargo from Afghanistan and Central Asia, which has been affected by the blockade of transit activities. Karachi ports have been a major hub for Afghan transit trade.

About 40,000 to 45,000 containers for Afghan imports transit through Karachi annually.

Each container costs an average of USD4,000 in terms of transport, insurance guarantee, terminal handling, port charges, clearing and forwarding and other facilities.

Thus, Pakistan derives an economic benefit of about USD160 million annually from Afghan transit trade.

He said that Pakistan lost about USD106 million due to the closure during the last eight months, while Pakistani ports are considered the shortest and least expensive trade route for Afghanistan.

From October 2025 to April 2026, about 10,000 transit containers remained stranded in Pakistan, which were subject to heavy demurrage and detention charges.

An average fine of USD120 per day was levied on each container, resulting in an additional cost of about USD1.2 million per day to Afghan importers.

During the last six months, this loss reached USD216 million. Afghanistan’s annual exports to Pakistan are about USD800 million.

In the last eight months, due to the trade blockade, Afghan exporters have lost about USD533 million.

Zia-ul-Haq Sarhadi, who is also the president of Frontier Customs Agents Association (FCAA) Khyber Pakhtunkhwa, said that Afghanistan’s annual exports to India through the Wagah border are about 300 million US dollars.

In the last eight months, due to the transit closure, Afghan exporters have suffered a loss of about USD200.

Due to the disruption of transit cargo in Pakistan, Afghanistan has also lost billions of Afghanis in customs duties and taxes.

Copyright Business Recorder, 2026