With Torkham closed, trading losses increase

Previously, Torkham handled daily traffic of around 10,000 people, 500-700 freight and passenger vehicles

Torkham border. Photo: file

PESHAWAR:

The Torkham border crossing, a vital lifeline for trade between Pakistan and Afghanistan, has been closed to all movement and commercial activity for more than four months since mid-October last year.

The closure, triggered by border clashes between Pakistani forces and Afghan Taliban fighters, has crippled cross-border trade, stranded hundreds of trucks, thrown thousands out of work and disrupted supply chains in both nations.

According to border sources and trade associations, the crossing was sealed after deadly exchanges on the night of October 11-12, when Afghan Taliban forces attacked Pakistani security posts in retaliation for alleged airstrikes. This led to an indefinite closure of not only Torkham but also other key points including Kharlachi, Ghulam Khan, Angoor Adda and Chaman. While a ceasefire was brokered soon after through Qatar and Turkey, trade routes have remained closed due to ongoing security demands and tensions.

The economic toll has been staggering. Traders estimate daily export losses through Torkham alone at around $2 million (about Rs 560 million at current rates), with pre-closure imports valued much higher. In about 120 days, this means export damage of over $240 million, hundreds of billions of rupees when you include stopped imports, lack of customs revenue and spillovers. Recent reports by business groups show that Pakistan’s monthly export losses are approaching $177 million (Rs 50 billion), with bilateral trade falling by over 50 percent in recent periods.

Before the closure, Torkham handled daily traffic of around 10,000 people and 500-700 goods and passenger vehicles. Its sudden halt has crippled local supply chains, transport networks and border markets. Mujeeb Shinwari, president of the All Customs Clearance Agents Association, said over 150 clearance offices in Torkham have been shut down, leaving at least 1,000 people idle. “This is not just about closed offices,” he said. “Dozens of families have seen their hearths go cold. Without urgent action, the damage could be irreversible.”

Zakir Shinwari, president of Torkham Labor Union, reported that more than 4,000 daily wage labourers, drivers, loaders, porters, hoteliers and service providers have lost their livelihood. Faisal Malook, vice-president of the Landi Kotal Traders Union, described the near-total collapse of local trade: “The markets are empty of customers. People once crossed daily to work and returned with goods; now there is nothing.”

The closure has also distorted prices. Afghanistan’s exports of vegetables, cotton and especially dried fruit, almonds, raisins, figs, pistachios and pine nuts have stopped, leading to sharp increases in Pakistani markets. Conversely, Pakistani exports such as potatoes, citrus fruits, bananas, jaggery and medicines have been propped up, depressing prices for farmers and manufacturers here and causing heavy losses.

The impact extends beyond the immediate boundary. Factories across Pakistan that rely on Afghan raw materials or markets have slowed, while hopes for expanded access to Central Asia via Afghanistan through projects such as the CASA-1000 power transmission have dimmed amid regional instability.

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