Pakistan’s Exports to Afghanistan Plunge 56% Amid Border Tensions

Pakistan’s central bank has reported a sharp 56% decline in the country’s exports to Afghanistan during the first six months of the 2026 fiscal year, with the total value falling to $219.489 million. According to the financial institution’s report, border tensions and clashes between Pakistan and the Taliban administration in the month of Mizan (roughly September-October) led to a halt in trade activities between the two sides, directly impacting traders and residents on both sides of the border. Meanwhile, data from Pakistan’s central bank shows that the country’s trade deficit with its nine neighboring countries increased by 44% in the first half of fiscal year 2026, reaching $7.683 billion. The report also states that the total exports from Pakistan to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives fell by 18.56% to $1.965 billion between July and December 2025, compared to $2.413 billion in the same period last year. Economic experts believe that political instability, closed border crossings, and the absence of clear economic policies from the Taliban administration have not only weakened bilateral trade with Pakistan but also seriously undermined Afghanistan’s position in regional commerce.