Business leaders in Khyber Pakhtunkhwa (KP) have sounded the alarm over the prolonged border closure of Pakistan’s trade routes with Afghanistan, warning that the disruption has caused massive economic losses at both regional and national levels. Trade crossings have remained largely shuttered for more than three months, severely affecting exports, commerce, transportation and government revenue.
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In a joint statement, Pakistan-Afghanistan Joint Chamber of Commerce and Industry senior vice president Ziaul Haq Sarhadi and Sarhad Chamber of Commerce and Industry representative Manzoor Ellahi said KP had borne the brunt of the shutdown. They noted that the province’s economy is heavily linked to Afghanistan due to proximity, shared commercial ties and its role as Pakistan’s primary transit corridor.
More than 90 percent of Pakistan’s exports to Afghanistan move through KP’s customs stations, mainly via Torkham. Business leaders estimated export losses of roughly Rs2.5 billion from halted shipments of cement, textiles, pharmaceuticals, construction materials and agricultural produce, alongside a similar loss in provincial revenue during the first five months of the fiscal year.
Exporters were reported to be losing over $4 million daily, with goods worth billions stranded at border points. Perishable produce spoiled, medicines expired, and raw materials deteriorated due to delays in clearance and storage.
They said Afghan transit trade to Central Asia had also contracted sharply, undermining transport, logistics and associated sectors. The prolonged closure, they warned, risked triggering industrial shutdowns and job losses, with up to 90 percent of KP’s industrial sector dependent on Afghan markets for imports and exports.
Thousands of labourers, truck drivers and daily-wage workers have already lost livelihoods in border districts. Commercial activity in Peshawar and surrounding cities has slowed sharply, while farmers and traders face mounting financial distress.
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The business community cautioned that Afghanistan’s move to shift trade towards Iran and Central Asian states could result in permanent loss of markets for Pakistani exporters. A recent report showed Pakistan-Afghanistan trade had fallen 53 percent year-on-year to $594 million in the first half of FY2025-26, down from $1.26 billion a year earlier.