Border closure halts bilateral transit trade

Tensions freeze Pakistan-Afghanistan deals; thousands of trucks stranded

Trucks filled with refugees’ belongings line up at the Torkham border before returning to Afghanistan. PHOTO: EXPRESS

PESHAWAR:

PESHAWAR

Ongoing border tensions between Pakistan and Afghanistan have brought all bilateral and transit trade to a standstill since Sunday, October 12, causing severe economic losses on both sides and leaving thousands of trucks stranded along the main crossings.

According to security sources, the suspension followed a late-night exchange of fire between October 11 and 12, in which Afghan forces allegedly opened unprovoked fire on Pakistani border troops. Pakistani forces responded robustly, sparking heightened tensions along the entire border from Chitral to Balochistan. As a result, all four major trade ports, Torkham, Kharlachi, Ghulam Khan and Chaman, were closed indefinitely.

The closure has crippled border trade and halted Afghan transit trade, dealing a billion-rupee blow to both economies.

Fresh data from the Federal Board of Revenue (FBR) for the financial year 2024-25 highlights the extent of the disruption. Annually, Pakistan imports goods worth $66.328 million from Afghanistan through the Torkham crossing and exports goods worth $62.766 million. Through the Ghulam Khan route imports an average of $80.109 million and exports $33.240 million per year. The Kharlachi crossing accounts for imports of $30.38 million and exports of $27.32 million, while trade through the Chaman port includes imports of $80.289 million and exports of $265.06 million annually.

Collectively, Pakistan’s four main border points with Afghanistan handle average annual imports worth $566.766 million and exports totaling $1.504 billion, contributing significantly to the national exchequer. FBR data shows that bilateral trade generates an estimated Rs 46.867 billion annually in customs duties alone.

The main Pakistani exports to Afghanistan include rice, cement, pharmaceuticals, medical equipment, textiles and fresh fruits, while imports from Afghanistan mainly consist of coal, fresh and dry fruits, soapstone, vegetables and other raw materials. The suspension of Afghan transit trade through the same crossings has compounded the losses, with customs officials confirming that the government is losing millions of rupees in daily revenue.

President of the Khyber Chamber of Commerce and Industries, Muhammad Yousaf Afridi, emphasized in an interview that Afghanistan remains Pakistan’s closest and most important market. “The closure of these trade corridors has effectively frozen industrial activity across the country,” he said.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top