PESHAWAR — The business community in Khyber Pakhtunkhwa (KP) has sounded an alarm over the prolonged closure of trade routes between Pakistan and Afghanistan, warning that the disruption, now extending beyond three months, has caused massive economic losses running into billions of rupees at both provincial and national levels.
In a joint press statement issued on Sunday, senior vice-president of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry Ziaul Haq Sarhadi and Sarhad Chamber of Commerce and Industry representative Manzoor Ellahi said the suspension of cross-border trade had severely affected exports, bilateral commerce, transportation businesses and government revenues. They described the situation as a major blow to Pakistan’s economy, with KP bearing a disproportionate share of the losses.
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The business leaders noted that KP’s geographical proximity to Afghanistan, strong ethnic and commercial linkages, and heavy reliance on cross-border trade made the province particularly vulnerable. More than 90 per cent of Pakistan’s exports to Afghanistan pass through KP customs stations, primarily via the Torkham border crossing, they said.
According to their estimates, KP exporters have suffered losses of around Rs2.5 billion due to stalled shipments of cement, textiles, pharmaceuticals, construction materials and agricultural products. In addition, the province has reportedly lost nearly Rs2.5bn in revenue during the first five months of the current fiscal year because of reduced trade activity and lower customs collections.
They said exporters were incurring losses exceeding $4 million per day, with goods worth billions of rupees stranded at border points. Perishable items spoiled, while medicines and raw materials expired, resulting in irreversible financial damage. Afghan transit trade to Central Asia, which previously involved 4,000 to 5,000 consignments annually, has also declined sharply, hurting the logistics and transport sectors and associated revenues.
Pakistan-Afghanistan bilateral trade has declined by 53pc. https://t.co/1S8nDERAsk
— Dawn.com (@dawn_com) January 12, 2026
The businessmen warned that prolonged border closures could trigger widespread industrial shutdowns and job losses. They claimed that up to 90 per cent of KP’s industrial sector depends on Afghan markets for exports and imports, and continued disruption could lead to factory closures, rising unemployment and increased regional instability.
They added that thousands of truck drivers, labourers and daily wage earners in border areas had already lost their livelihoods, while commercial activity in markets across Peshawar and other cities had slowed significantly. Farmers and traders have also borne heavy losses due to the spoilage of fruits, vegetables and other perishables.
Citing recent trade data, the business leaders said Pakistan-Afghanistan bilateral trade declined by 53 per cent year-on-year, falling to $594 million in the first half of fiscal year 2025-26 from $1.26bn in the same period last year, largely due to the closure of border crossings.
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