Pakistan Faces Major Economic Losses as Trade Routes with Afghanistan Remain Blocked
The Pakistani daily Dawn has reported significant economic losses suffered by Pakistan following the ongoing trade route closures with Afghanistan, particularly in the export sector.
According to the report, the suspension of exports to Afghanistan has not only disrupted bilateral trade but also affected Pakistan’s transit routes to Central Asia and Russia. Key export commodities such as cement and coal, once major Pakistani exports to Afghanistan, have been completely halted.
As a direct consequence, the price of coal has surged to as much as 45,000 Pakistani rupees per ton. To meet its annual demand of four million tons of coal, Pakistan has been forced to turn to distant suppliers like South Africa, Indonesia, and Mozambique.
The cement industry has also suffered heavily. Prominent Pakistani companies such as Cherat, Fauji, and Maple Leaf — all partially reliant on exports to Afghanistan — have faced significant setbacks. Revenues from Afghan exports accounted for 9.8%, 5.8%, and 3.1% of the respective annual income of these companies.
Dawn cited statistics showing that out of Pakistan’s $1.8 billion in total exports to Afghanistan, around $187 million had come from pharmaceutical products — a sector now entirely halted.
Karachi’s fruit vendors’ association told Dawn that Pakistan has had to replace Afghan pomegranate imports with Iranian ones, a shift that has led to steep price increases. A 10-kilogram box of pomegranates now sells for as much as 4,500 Pakistani rupees. The vegetable market is also experiencing a severe supply shortage due to the disruption in imports.
Meanwhile, hundreds of shipping containers are stuck at border checkpoints. Between 700 to 750 containers are stranded at the Chaman crossing, while another 350 to 400 are held up at Torkham. Additionally, more than 9,000 containers are awaiting customs clearance at ports.
Dawn emphasized that current Pakistani policies toward Afghanistan have not only caused the country to lose its regional market but have also led to a sharp decline in export revenues and foreign exchange earnings, especially in sectors such as wheat and flour, which previously had a significant market in Afghanistan.
The report concludes that this situation is a direct result of the Taliban’s restrictive trade and economic policies. Instead of fostering regional cooperation, these policies have blocked economic corridors and escalated economic tensions at border crossings.
