The ongoing nine-month disruption in Pakistan-Afghanistan border trade has caused economic losses exceeding Rs. 400 billion (about $1.4 billion) for businesses in both countries, severely affecting exports, imports, transit trade and government revenues, according to the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI).
In a statement, PAJCCI Senior Vice President Ziaul Haq Sarhadi claimed Afghanistan remained one of Pakistan’s most important export markets, with exporters typically receiving advance payments immediately after orders are confirmed. He said Pakistan exports around $1.5 billion in goods annually to Afghanistan, with the past nine months of trade disruption causing losses of nearly $1 billion.
Transit trade with Central Asia
According to Sarhadi, Pakistan also exports around $800 million worth of goods annually to Central Asian countries through Afghanistan. He said the suspension of this route had resulted in losses of approximately $225 million for Pakistani exporters.
Additionally, per the PAJCCI, Pakistan imports cotton, pulses and other commodities from Central Asia through Afghanistan and the route’s closure has significantly increased import costs by forcing traders to use pricier alternative routes. He further claimed Pakistan had lost billions of rupees in customs duties and tax revenues previously generated from cargo moving through Afghanistan and Central Asia.
Karachi Ports
Referring to Afghan transit trade through Karachi ports, Sarhadi said roughly 40,000-45,000 containers arrived in Pakistan annually prior to moving toward Afghanistan. Each container, he claimed, generates an average of $4,000 in transport, insurance guarantees, terminal handling, port charges, clearing and forwarding, and related services, providing Pakistan with an estimated $160 million in annual economic benefits.
Consequently, said the PAJCCI official, the border closure had inflicted losses of approximately $106 million from these activities.
Between October 2025 and April 2026, per Sarhadi, around 10,000 transit containers remained stranded in Pakistan, resulting in heavy demurrage and detention charges. He said importers were charged an average penalty of $120 per container per day, increasing Afghan importers’ costs by roughly $1.2 million daily. Over the past six months, these additional expenses have reached approximately $216 million, he added.
Afghan businesses
The PAJCCI senior vice-president said Afghanistan exports around $800 million annually to Pakistan and the border closure had resulted in traders from the neighboring country suffering estimated losses of $533 million. Further, he said, Afghanistan’s annual exports to India through the Wagah border crossing amounted to about $300 million, with exporters losing around $200 million during the relevant period because of transit restrictions. The disruption has also deprived Afghanistan of substantial customs and tax revenues from transit cargo, he said.
Sarhadi, who also serves as president of the Frontier Customs Agents Association Khyber-Pakhtunkhwa, urged authorities in both Pakistan and Afghanistan to review their current positions and resolve the dispute through dialogue. He said traders, farmers, importers, exporters and businesses on both sides of the border are demanding the immediate restoration of bilateral and transit trade.
Redirecting Afghan transit cargo from Karachi ports to alternative ports has proved costly, complex and time-consuming, further harming businesses in both countries, he maintained. Restoring trade and transit activities would help reduce poverty, promote economic stability, create employment opportunities and strengthen regional peace and prosperity, he added.