Pakistan-Afghanistan Trade Shrinks To $1 Billion Amid Border Closures And Policy Instability

(MENAFN- Tribal News Network) The annual trade volume between Pakistan and Afghanistan has plunged from $2.5 billion to just $1 billion due to inconsistent trade policies and frequent closures of the Pakistan-Afghanistan border.

According to Zia

Haq Sarhadi, Vice President of the Pakistan-Afghanistan Joint Chamber of Commerce, the decline in bilateral trade is deeply concerning. He emphasized that for Pakistan to boost trade, it must gain access to Central Asian states and stabilize its trade relations with Afghanistan.

In recent years, Pakistan has exported cement, steel bars, medicines, vegetables, flour, and sugar to Afghanistan, while importing fruits and vegetables in return. However, Sarhadi noted that political instability in Afghanistan has also negatively affected trade flows.

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One of the major setbacks occurred in February when tensions between the two neighboring countries led to the closure of the Pak-Afghan border. The shutdown caused millions of rupees in tax revenue losses for both sides and severely disrupted commerce.

The economic fallout extended beyond trade figures. From Karachi to Torkham, thousands of laborers and workers associated with cross-border trade were rendered jobless for days, further worsening the situation.

Business leaders and trade bodies have called for consistent policy-making and sustained engagement between Islamabad and Kabul to restore and enhance bilateral trade. They stress that economic cooperation is key not only for commercial gain but also for regional stability.

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