Pakistan, Afghanistan -handel hits $ 1 billion in H1 2025

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Due to Kabul’s insurance policies for Islamabad on TTP and other key issues, trade between the two sides has reached $ 1 billion in the first six months of 2025.

The latest report published by the Afghan Ministry of Commerce shows increasing interest in bilateral trade. According to the data, Afghanistan recorded $ 277 million in exports to Pakistan, while Islamabad generated $ 712 million in exports to Afghanistan during the first half of the current year.

Afghanistan’s largest export to Pakistan included cotton, coal, soft stones and dry fruits. In turn, Islamabad exported industrial and food.

“Pakistan and Afghanistan are naturally trading partners that are geographically associated. However, new restrictions and prohibitions on certain things have created mixed feelings among the traders on both sides, resulting in a fall in trade volume. We must separate trade from politics, security concerns and TTP,” a senior Afghan official told Express Pakinomist over the phone.

To reach previous trade levels of over $ 3 billion, Islamabad must show flexibility in the customs and activate light selection on all four major border points: Torkham, Ghulam Khan, Kharlachi and Spin Boldak (Chaman). Services at the Wagah border, Karachi and Gwadar ports must also be resumed as Afghan dealers are facing difficulties at all Pakinomist.

“Due to difficulties in border crossings, visa issues and restrictions from Islamabad after each security event, trade is severely affected. However, the six-month numbers still reflect a positive diplomatic commitment between Islamabad and Kabul, which largely due to deputy Ishaq Dar’s visit and ambassador Sadiq Khan’s Diplomacy,” Noor Khan added. “

“This is a positive development in bilateral trade between Pakistan and Afghanistan, which has almost reached $ 1 billion in just the first half of 2025 (January-June). If trade continues without disturbance, the bilateral trading volume could reach $ 2 billion dollars by the year after year,” Haq Nawaz Khan, a senior journalist Washington Posttold Express Pakinomist.

“The current trade balance can reach the top of $ 2 billion that witnessed a decade ago. Both sides have to intensify diplomatic efforts to raise volume to the targeted $ 6 billion. This is still a daunting task due to the current security challenges,” HAQ added.

“Commercial quantities were sluggish between 2020 and 2023 and became less than $ 1 billion. Despite political and security barriers and closures of trade routes, trade has continued.”

“Islamabad has taken measures to ensure that the flow of trade remains unharmed despite serious challenges. The efforts of Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar and Ambassador Muhammad Sadiq produce positive results, leading to an unprecedented growth in both export and import.”

Bilateral trading data released by the Kabul Ministry of Industry and Trade shows that trade remains tilted to Pakistan’s benefit, with Pakistan, which accounts for approx. 70% of total trade exports, compared to Afghanistan’s 30%.

“I think Kabul and Islamabad should tackle trade separately from political issues that have significantly harmed trade in recent years,” said Haq. “The recent wave of terrorism in Pakistan’s northwestern Khyber Pakhtunkhwa is a serious challenge, but this should not affect trade. If Pakistan and Afghanistan continue to create obstacles, others can catch their respective markets.”

It is relevant to mention that Pakistan’s special envoy will visit Kabul in the coming days to facilitate the trading environment and discuss the TTP question that has raised concerns in northern and southern districts.

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