Finance adviser Muzzammil Aslam says closures hurt jobs and revenue with 80% drop in border trade charges
Trucks loaded with supplies wait to cross into Afghanistan at the Friendship Gate crossing in the Pakistan-Afghanistan border town of Chaman. PHOTO: REUTERS/FILE
KHYBER PAKHTUNKHWA:
The Khyber Pakhtunkhwa government has warned the federal government that the prolonged closure of trade at the Pakistan-Afghanistan border is causing revenue loss and cutbacks.
In a letter to Federal Commerce Minister Jam Kamal, KP Finance Adviser Muzzammil Aslam said cross-border trade had been severely disrupted, with trading activity “effectively at a standstill”. He noted that the situation was particularly worrisome as Pakistan faced declining exports, slower economic growth and rising unemployment.
Aslam said the province had been informed of an “alarming” 80% drop in the collection of the infrastructure development certificate, a tax linked to cross-border trade. He attached a letter from the Khyber Pakhtunkhwa Revenue Authority (KPRA) on tax revenue that highlighted broader revenue challenges.
The finance adviser called for a high-level meeting of federal and provincial stakeholders to assess the revenue implications for Khyber Pakhtunkhwa and address challenges faced by exporters and traders.
Border closure
The main border crossings with Afghanistan have been closed to normal trade and transit since 10 October 2025 following deadly clashes along the border and reports of Pakistani airstrikes. Islamabad has linked the escalation to demands that Kabul act against militants it says are launching attacks from Afghan soil, which the Taliban have denied.
Read: Pakistan seals border with Afghanistan after cross-border fire
A ceasefire was discussed in talks held by Qatar and Turkey and was reported to be holding, but trade has not resumed, with talks stalled as both sides continue to blame each other.
In early December, Pakistani officials said Islamabad approved a limited humanitarian exception to allow UN aid containers into Afghanistan while maintaining the broader border closure to regular trade.
A new effort has been made to resolve the impasse through trade-focused engagement. Pakistan and Afghanistan agreed to form a 13-member joint committee to hold formal talks in Torkham to ease border management issues and restore cross-border trade.
