Pakistan Loses $4.5B Amid Trade Halt With Afghanistan

KABUL (Pajhwok): The Afghanistan-Pakistan Joint Chamber of Commerce and Industries (PAJCCI) on Wednesday reported that the closure of trade routes between the two countries has resulted in losses of up to $4.5 billion for Pakistan's trade.

According to reports, Pakistan closed all trade routes with Afghanistan approximately two months ago following alleged violations of Afghan territory by Pakistani forces and attacks near the Durand Line, which prompted retaliatory strikes by Afghan forces.

In response, the Islamic Emirate of Afghanistan (IEA) also suspended trade with Pakistan and urged industrialists and traders to use alternative trade routes. Afghan officials stated that repeated closures of trade routes and the politicisation of commercial and humanitarian matters left the IEA with no choice but to take this action.

Pakistan's Dawn newspaper, citing PAJCCI, reported that the closure has paralysed a vital trade corridor that had been worth billions of dollars annually. Before the shutdown, bilateral trade between the two countries stood at approximately $2–3 billion per year, with Pakistan exporting high-value goods while Afghanistan relied on Pakistan for essential commodities and exported agricultural perishables in return.

During peak seasons, particularly in agriculture and construction, daily exports through crossings reached $50–60 million, including cement, sugar, kinnows (citrus fruits), potatoes, medicines, and surgical instruments.

The ongoing suspension of trade has already caused cumulative losses exceeding $4.5 billion for Pakistan, PAJCCI stated. Seasonal exports such as mandarins and potatoes - whose export window runs from December to March - are expected to incur additional losses of around $200 million if the situation persists.

The cement industry has been among the hardest hit, as Afghanistan remains a major market for Pakistani cement exports. At the same time, the halt in coal imports from Afghanistan has increased production costs for industries in Pakistan's northwestern region.

Thousands of truck drivers, labourers, clearing agents, and porters have been left without work, while more than 8,000 trucks remain stranded at the Torkham and Chaman crossings.

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