Afghanistan has raised serious concerns over Pakistan’s recent decision to block exports to India through its territory. A delegation led by Afghanistan’s Deputy Minister of Industry and Trade visited Pakistan from July 21 to 23, 2025. During the visit, they met with Pakistan’s Commerce Secretary to discuss the halt in transit trade via the Wagah border, a key trade route for Afghan goods.
The Afghan delegation referred to the 2010 Afghanistan-Pakistan Transit Trade Agreement, which allowed Afghan exports to reach India through Pakistan’s Wagah border. However, Pakistan informed them about a new policy imposed in May 2025, banning third-country trade with India through Pakistani territory. This decision came amid growing tensions between the two nuclear neighbors.
Pakistan implemented these trade restrictions following India’s unilateral suspension of the Indus Waters Treaty in May 2025. The ban affects all land, air, and sea trade routes between Pakistan and India, including imports, exports, and third-country transit trade. This move is Pakistan’s direct response to India’s earlier diplomatic and trade sanctions.
The tension between the countries worsened after an April 2025 attack on tourists in Pahalgam, which India blamed on Pakistan-based groups. In retaliation, India suspended diplomatic relations and canceled Pakistani visas. Pakistan responded by closing its borders to India, banning Indian airlines from Pakistani airspace, and ordering Indian citizens to leave Pakistan within 48 hours.
This trade dispute highlights the fragile political relationship between Pakistan and India and its impact on regional trade. Afghanistan is caught in the middle, facing challenges exporting goods to India. Both countries continue dialogue to manage the consequences of these restrictions and seek solutions to ease regional trade tensions.