The prolonged closure of the Torkham border crossing between Pakistan and Afghanistan has caused devastating economic impacts and losses exceeding $45 million in total trade and nearly Rs 16.5 billion in halted exports and imports.
The month-long shutdown has not only paralyzed bilateral trade but has also shaken business confidence, and thousands of traders, transporters, and manufacturers across Pakistan are encountering with financial distress.
Massive Trade Losses and Shrinking Market Share
The Torkham border is the most vital trade artery for both countries remained closed for over a month, and it is severely disrupting the movement of goods across the border and Pakistan has the bear the loss. Officials and traders report that Pakistan has already lost more than 65% of its share in the Afghan market to competitors such as Iran, Turkiye, Central Asian states, and even India.
This shift began after the Taliban’s return to power in 2021, but Pakistan’s security-driven trade policies have worsened the situation. Frequent closures and unpredictable restrictions have driven Afghan traders to seek more reliable partners.
Iran, in particular, has benefited the most, offering simplified visa procedures, smoother customs processing, and overall easier trade access compared to Pakistan.
Torkham Border Closure Impact on Pakistani Industry and Exports
The shutdown has rippled through Pakistan’s manufacturing and agricultural sectors, especially in Khyber Pakhtunkhwa, Punjab, and Sindh, where many industries depend on exports to Afghanistan.
Key affected goods include cement, textiles, shoes, fruits, vegetables, poultry, animal feed, and confectionery.
Perishable exports like potatoes, bananas, and kinnow oranges have been particularly hard hit, with exporters warning that continued closures could ruin the upcoming citrus season.
Read more: Pak-Afghan Torkham border likely to reopen soon after ceasefire
Mujeebullah Shinwari, head of the Torkham Customs Clearing Agents Association, revealed that daily container traffic has fallen from 1,200 to just 250 trucks, drastically reducing customs and tax revenues.
Traders Demand Policy Reform
Local traders are calling for a clear, business-friendly trade policy that separates commerce from political and security tensions.
According to exporter Qari Nazeem Gul, Afghan importers now prefer trading with Iran because of its stable border policies and relaxed trade environment.
Pakistan’s annual trade volume with Afghanistan has dropped from $2.5 billion (2012–2016) to barely $800–900 million today. Many small traders are struggling to survive, with some on the verge of leaving the industry entirely.
A Call for Diplomatic and Economic Cooperation
For restoring trust and reviving cross-border commerce, experts keep on giving suggestions for forming a joint jirga of
- Tribal elders
- Politicians
- Trade representatives from both countries
This body could help in negotiating a mutually beneficial reopening plan and prevent future disruptions.
The Torkham border is more than a checkpoint — it’s a lifeline for regional trade and a vital connector for Pakistan’s export-driven economy.
If the government fails to act swiftly, Pakistan risks losing its strategic trade influence in Afghanistan permanently, handing over a vital market to its regional rivals.