Pakistan-Afghanistan Trade Volume Shrinks to \$1 Billion Amid Policy Instability and Border Closures

The trade volume between Pakistan and Afghanistan has dropped significantly from \$2.5 billion to just \$1 billion, mainly due to inconsistent trade policies and frequent border closures driven by political tensions.

According to Zia-ul-Haq Sarhadi, Vice President of the Pakistan-Afghanistan Joint Chamber of Commerce, the decline in trade has been further exacerbated by instability within Afghanistan and strained bilateral relations. He emphasized that for trade to recover, Pakistan must gain access to Central Asian markets, which would enhance regional connectivity and economic prospects.

Pakistan exports cement, steel bars, pharmaceuticals, vegetables, flour, sugar, and other goods to Afghanistan, while importing fruits and vegetables from its neighbor. However, due to persistent issues such as political instability in Afghanistan and unpredictable border policies, trade has remained under pressure.

In February, the Pakistan-Afghanistan border was closed amid heightened tensions, causing millions of rupees in tax revenue losses for both countries. The closure also impacted thousands of workers along the supply chain — from Karachi to Torkham — leaving many temporarily unemployed.

Experts urge both nations to adopt stable and cooperative trade policies to revive economic ties and minimize future disruptions.