The Khyber Pakhtunkhwa government has warned the federal government that the prolonged closure of Pakistan-Afghanistan trade is causing revenue losses and job cuts. Finance Adviser Muzzammil Aslam said cross-border commerce has “effectively come to a halt,” hurting traders and exporters. He cited declining exports, slower growth, and rising unemployment as major concerns.
Aslam highlighted an alarming 80% drop in Infrastructure Development Cess collections tied to border trade. He attached a letter from the KP Revenue Authority showing broader revenue shortfalls. The adviser called for a high-level meeting between federal and provincial stakeholders to address the financial and economic impact.
Read more: Afghan trade defies Pakistan closures
The main border crossings with Afghanistan have been closed since October 10, 2025, following clashes and reports of Pakistani airstrikes. Islamabad linked the escalation to militant attacks from Afghan soil, which Kabul denied. Despite a ceasefire discussed in Qatar and Turkey, regular trade has not resumed.
Limited humanitarian exceptions allowed UN relief containers to cross into Afghanistan in early December. Meanwhile, both sides continue to blame each other for delays. Pakistan and Afghanistan agreed to form a 13-member joint committee to hold formal negotiations at Torkham to ease border management and restore trade.
Read more: Pak–Afghan trade restarts at Torkham border
Authorities said the border shutdown is causing a serious strain on livelihoods and provincial revenues. Officials warned that unless trade resumes, businesses and jobs will continue to suffer. The KP government urged the federal government to take urgent steps to resolve the deadlock.