Afghan Regime’s Sudden Trade Suspension Shocks KP’s Business, Industry

Nov 14, 2025 | Economy, Current Affairs

KHYBER, Nov 14: The Afghan Taliban regime’s abrupt announcement suspending all trade ties with Pakistan has sent shock waves across Khyber Pakhtunkhwa’s commercial, industrial and transport sectors, where thousands rely on cross-border commerce for their livelihoods.

In a video message on Thursday, Afghanistan’s First Deputy Prime Minister for Economic Affairs, Mullah Abdul Ghani Baradar, warned Afghan traders against maintaining any trade relations with Pakistan. He said Kabul would not be responsible for any losses and declared that all existing trade contracts with Pakistanis would end within three months. Afghan businesses, he said, should “explore new avenues” and shift to alternative markets.

Fear of Losing Afghan, Central Asian Markets

The announcement triggered alarm among Pakistani business leaders.
Ziaul Haq Sarhadi, senior vice president of the Pak-Afghan Joint Chamber of Commerce and Industry, warned that Pakistan risked losing not only the Afghan market but also its access to Central Asia, markets it had only recently begun to penetrate through new trade agreements.

Pakistan currently exports between $100–200 million worth of goods monthly to Afghanistan—including cement, fruits, medicines, agricultural tools, shoes and plastic goods. Sarhadi said Kabul had far more alternatives than Pakistan: “We are the ultimate losers due to the closure of our border with Afghanistan.”

Severe Blow to KP Industries and FBR Revenues

Former Sarhad Chamber president Zahidullah Shinwari said the suspension would deal a major blow to the Federal Board of Revenue, which collects millions daily from Pak-Afghan trade. He warned that KP’s industries—already less competitive than those in Punjab and Sindh—would be disproportionately affected, particularly cement factories dependent on Afghan coal.

“If the trade ends permanently, most industrial units in KP could shut down,” he cautioned, predicting widespread unemployment and bankruptcies.

Transport Sector Paralysed; Hundreds of Trucks Stranded

Mujeebullah Shinwari, president of the Torkham Clearing Agents’ Association, said the suspension had plunged local traders and transporters into crisis, with around 500 loaded trucks stranded on the Pakistani side of the border. Exporters and factory owners are unwilling to take back goods, while transporters—already paid for delivery to Kabul—are contractually obligated to complete the shipments.

“This is a very uncertain and unfortunate situation. Local traders and transporters are now caught between the devil and the deep sea,” he said.

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Calls to Rethink Pakistan’s Approach

Business leaders across KP urged Islamabad to reassess its security and diplomatic posture toward Kabul, arguing that the economic fallout far outweighs political gains.

“We need to rethink our security policies,” said Zahidullah Shinwari. “Our financial losses are much bigger than any point-scoring over security issues.”

With border reopening nowhere in sight, stakeholders warn that continued suspension could devastate KP’s economy, labour force and regional trade standing.

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