Trade between Pakistan and Afghanistan fell by 74% in the 2025-26 financial year as border closures and heightened tensions disrupted commercial activity between the two countries, according to Pakistan’s Trade Development Authority.
Bilateral trade dropped to $358 million from $1.3 billion in the previous financial year, Pakistan’s Dawn newspaper reported, citing official trade data.
The decline comes amid prolonged disruptions at major border crossings between Afghanistan and Pakistan. Torkham, one of the busiest crossings between the two countries, was closed following deadly clashes, while other crossings, including Kharlachi, Ghulam Khan and Angur Adda in Khyber Pakhtunkhwa and Chaman in Balochistan, have also faced trade restrictions.
The closures have affected traders, transport companies and communities that depend on cross-border commerce.
Afghan transit trade through Pakistan has also fallen sharply. According to figures released in July, the number of transit containers dropped from nearly 89,000, valued at about $5 billion, to 11,592 containers worth $367 million in the last financial year.
Pakistan exports pharmaceuticals, cement, plastics, rice, fruits and vegetables to Afghanistan, while imports include onions, tomatoes, seeds, grapes, dried apricots, apples, coal and unprocessed lead.
Junaid Altaf, a former president of the Sarhad Chamber of Commerce and Industry, said disruptions at the border have particularly affected businesses, workers and border communities in Khyber Pakhtunkhwa.
Pakistan’s pharmaceutical industry has also been affected. According to Pakistan Bureau of Statistics data cited in the report, the sector exported about $130 million worth of products to Afghanistan in the 2023-24 financial year.
Agricultural traders have reported losses as well. Malik Sohni, president of the Pakistan Agricultural Produce Traders Federation, said that before the border disruptions, as many as 50 trucks carrying potatoes and 25 carrying green vegetables traveled to Afghanistan each day.
Sohni said he suffered losses of 180 million Pakistani rupees after prices fell following the sudden disruption in trade.
The decline in commerce comes amid strained relations between Pakistan and Taliban authorities over security. Islamabad has demanded concrete and verifiable action against militant groups it says operate from Afghan territory. Taliban authorities have rejected Pakistan’s allegations that they allow Afghan soil to be used for attacks against neighboring countries.
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