$4.5 Billion Lost Due To Pakistan-Afghanistan Border Closure, Trade And Jobs Hit

The prolonged closure of the Pakistan-Afghanistan border for more than two months has caused cumulative losses exceeding $4.5 billion for Pakistan, severely impacting trade, employment, government revenues, and regional connectivity, business leaders warned on Tuesday, reported by Dawn.

Senior vice president of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) Ziaul Haq Sarhadi and former senior vice president of Sarhad Chamber of Commerce and Industry Eng. Mansoor Ellahi said the border closure had paralysed a critical trade corridor previously worth billions annually. Bilateral trade between the two countries stood at roughly $2-3 billion per year, with Pakistan exporting high-value goods and Afghanistan relying on essential commodities while exporting agricultural perishables in return.

During peak seasons, particularly in agriculture and construction, daily exports through Torkham, Chaman, and Ghulam Khan borders reached $50-60 million, including cement, sugar, kinnows (citrus fruit), potatoes, medicines, and surgical instruments. Seasonal exports such as mandarins and potatoes, whose window runs from December to March, are expected to suffer additional losses of around $200 million if closures persist.

The cement industry has been severely affected, as Afghanistan is a major market for Pakistani cement. Simultaneously, the halt in coal imports from Afghanistan has pushed up production costs for industries in Pakistan's northwestern region. Trade in medicines and surgical goods, valued at nearly $200 million annually, has also come to a complete standstill, raising concerns over shortages in Afghanistan and revenue losses for Pakistani pharmaceutical companies.

Afghanistan traders have similarly suffered, losing access to key markets for dry fruits, grapes, pomegranates, and other perishables. The lack of export avenues has led to spoilage of goods and immediate income losses for farmers in border regions. Thousands of truck drivers, loaders, clearing agents, and porters remain unemployed, with more than 8,000 trucks stranded at the Torkham and Chaman crossings, incurring daily demurrage charges and fuel expenses without income.

Meanwhile, Afghanistan traders have incurred major losses as shortages of essential goods have pushed prices sharply higher, driving up inflation across major cities. The economic strain has intensified with a new influx of Afghan refugees returning from Iran and Pakistan, further burdening jobs, housing, and public services.

Relations between Islamabad and the Taliban administration remain tense. Pakistan has accused Kabul of supporting the Tehreek-e-Taliban Pakistan (TTP), allegations that the Taliban firmly deny. Earlier attempts to resolve the issues through peace and trade negotiations in Qatar, Turkey, and Saudi Arabia have failed to produce lasting solutions, leaving the border closure unresolved and economic ties in limbo.

Business leaders and chambers of commerce in Peshawar and Quetta have urged both governments to immediately resume dialogue and reopen the borders. They warned that continued closure could deepen the economic crisis, push thousands more families into poverty, and disrupt regional connectivity through Pakistan's ports to Central Asia.

MENAFN17122025000228011069ID1110491835