Closure of Trade Routes with Afghanistan Slashes Khyber Pakhtunkhwa Revenues by Over 50%
Pakistani media have reported that the continued closure of trade routes between Pakistan and Afghanistan since October has dealt a significant blow to the revenues of the Khyber Pakhtunkhwa province. According to these reports, the provincial government’s revenue from infrastructure development charges has seen a sharp decline compared to the previous year.
The Pakistani newspaper Dawn, citing official documents, stated that income from infrastructure development charges (IDC) in the first seven months of the current fiscal year dropped from 7.42 billion Pakistani rupees to 3.48 billion rupees, indicating a fall of over fifty percent.
According to the report, Mazammil Aslam, the financial advisor to the Chief Minister of Khyber Pakhtunkhwa, in a four-page letter to Jam Kamal, Pakistan’s Commerce Minister, has called for an immediate joint meeting between provincial and federal officials. The purpose of this request is to find solutions to the economic consequences of the ongoing closure of trade routes.
The report adds that during this meeting, the impact of reduced revenues on the Khyber Pakhtunkhwa economy, as well as challenges faced by traders and exporters—including delayed payments and decreased commercial activities—are expected to be thoroughly examined. This situation persists amid ineffective coordination between Pakistani authorities and the Taliban administration in managing the border crossings, which continues to be cited as a key factor prolonging the trade crisis.
