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Pakistan-Afghanistan trade falls 6% to $475 million in first quarter of FY2025-26
Bilateral trade between Pakistan and Afghanistan declined by 6 percent during the first quarter of Pakistan’s 2025–26 fiscal year, totaling $475 million, compared to $502 million in the same period of 2024–25, according to official data.
Pakistan’s The Nation reported that on a year-on-year basis, trade between the two neighbors also dropped by 13 percent in September 2025, reaching $177 million, down from $204 million in September 2024.
Exports decline, imports rise
Pakistan’s exports to Afghanistan saw a notable decline of 15 percent, falling from $320 million to $271 million during the July–September period. Officials attributed the drop to reduced demand and supply chain challenges.
In contrast, Pakistan’s imports from Afghanistan increased by 12 percent, rising from $182 million to $203 million, suggesting stronger Afghan export activity and higher demand for Afghan goods in Pakistan.
As a result, Pakistan’s trade surplus with Afghanistan narrowed, driven primarily by the sharper fall in exports relative to overall trade volume.
Monthly and yearly trends
On a year-on-year (YoY) basis, Pakistan’s exports to Afghanistan dropped sharply by 36 percent, from $128 million to $81 million, while imports from Afghanistan grew 26 percent, from $76 million to $96 million.
Month-on-month, total trade grew 19 percent, from $149 million in August to $177 million in September 2025.
During that same period, Pakistan’s exports fell 8 percent, while imports surged 56 percent, reflecting a widening shift in trade dynamics.
Export performance by category
Despite the overall decline, several key Pakistani export categories saw strong growth during the first quarter of FY2025-26:
Prepared animal fodder and oil cakes: up 557%, from $0.7 million to $4.59 million
Fruits and vegetables (mainly mangoes): up 140%, from $9.22 million to $22.10 million
Animal or vegetable fats and oils: up 72%, from $6.14 million to $10.58 million
Cement: up 41%, from $20.65 million to $29.06 million
Wood and articles: up 29%, from $9.52 million to $12.32 million
Plastics and articles: up 42%, from $5.07 million to $7.19 million
Pharmaceutical products: up 10%, from $40.61 million to $44.68 million
Declining exports
Several traditional export commodities, however, experienced steep declines.
Sugar exports dropped 100%, from $69.75 million to zero
Malt extract: down 84%, from $7.51 million to $1.22 million
Tractors: down 61%, from $3.63 million to $1.41 million
Miscellaneous edible food preparations: down 53%, from $13.89 million to $6.47 million
Rice: down 21%, from $64.11 million to $50.55 million
Trade outlook
Economists note that while Afghan exports to Pakistan are rising, the drop in Pakistan’s exports could reflect supply disruptions, pricing pressures, or evolving trade routes following new customs and transit policies.
Bilateral trade between the two countries has historically fluctuated due to border closures, political tensions, and shifting regional logistics networks. However, both Islamabad and Kabul have expressed interest in stabilizing trade flows through new mechanisms under the Afghanistan–Pakistan Transit Trade Agreement (APTTA) and expanded regional connectivity initiatives.
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Qatari PM: Dialogue with non-state actors key to regional peace
He also criticised political figures who, he said, distort Qatar’s role for domestic gain, despite its mediation leading to hostage releases, humanitarian pauses, and ceasefires.
Qatar’s Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani urged direct engagement with non-state actors as essential to resolving conflicts across the region, from Afghanistan to Gaza.
Speaking at the 23rd Doha Forum, he said peace efforts cannot succeed if major actors on the ground are excluded. “You cannot reach a solution if no one is speaking to non-state actors,” he told a session moderated by US journalist Tucker Carlson.
Sheikh Mohammed noted that Qatar’s mediation model—used in Afghan peace talks and repeated ceasefire efforts in Gaza—is built on facilitating communication between all sides. He revealed that both Hamas and the Taliban opened political offices in Doha at the request of the United States to maintain reliable channels for negotiations.
Addressing accusations that Qatari aid to Gaza was diverted to Hamas, he stressed that all funds were delivered transparently to civilians, with oversight from the US and coordination with Israel.
He also criticised political figures who, he said, distort Qatar’s role for domestic gain, despite its mediation leading to hostage releases, humanitarian pauses, and ceasefires.
The Qatari PM condemned Israel’s strike on Qatari territory in September as an “unprecedented” breach of diplomatic norms and said reconstruction of Gaza must be the responsibility of those who caused the destruction.
This year’s Doha Forum brings together more than 5,000 participants from 162 countries to discuss conflict resolution, humanitarian crises, and global governance.
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Doha Forum: Dialogue between Afghanistan and Pakistan key to regional connectivity
Qanit urged both countries to take a long-term view. “It is essential for Pakistan and Afghanistan to sit together and resolve these problems. If these crises continue, confidence in regional connectivity will erode.”
At the Doha Forum on Saturday, Afghan officials underscored the critical need for renewed dialogue between Afghanistan and Pakistan, warning that recent political tensions risk undermining the region’s broader connectivity and integration goals.
Abdul Hai Qanit, Director of the Center for Strategic Studies at Afghanistan’s Ministry of Foreign Affairs, told participants that constructive engagement between Kabul and Islamabad is essential for long-term stability and economic cooperation.
“We can resolve all issues through dialogue,” Qanit said. “But we must not reach a point of no return, as there are significant interests tied to regional integration.”
He noted that Afghanistan has a strong interest in maintaining positive relations with Pakistan, but cautioned that recent developments are jeopardizing shared progress.
“Trade routes are being weaponized, geography is being politicized, and corridors are being used as leverage in political disputes,” he said. “This threatens the very concept of regional integration.”
Qanit urged both countries to take a long-term view. “It is essential for Pakistan and Afghanistan to sit together and resolve these problems. If these crises continue, confidence in regional connectivity will erode.”
Despite current tensions, he expressed optimism that the situation is temporary. “I believe this is a short-term crisis. The Pakistan-Afghanistan relationship will return to a positive track. Afghanistan can advance ongoing projects and serve not as a threat, but as a hub linking South Asia and Central Asia.”
Echoing this focus on cooperation, Dr. Eldor Aripov, Director of Uzbekistan’s Institute for Strategic and Interregional Studies, emphasized that economic engagement remains the most effective way to support Afghanistan’s development.
“Different approaches are needed,” he said. “Our position is clear: economic cooperation is the best tool to help Afghanistan move forward.”
As discussions at the Doha Forum continue, regional leaders are exploring pathways to strengthen cross-border economic projects and expand connectivity across South and Central Asia.
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Syria’s President challenges West’s counter-terrorism claims in Afghanistan and Iraq
Syrian President Ahmed al-Sharaa has stated that “the majority of those killed in the wars in Afghanistan and Iraq were innocent civilians.”
Speaking to CNN’s Christiane Amanpour on Saturday during the Newsmaker Interview at the Doha Forum, al-Sharaa said: “In every war in the region—whether in Iraq or Afghanistan—we saw that most of the casualties were civilians, yet many of them were labeled as terrorists. The real criminals are those who call others terrorists.”
He also commented on the situation in Syria, asserting that the Assad regime has killed more than one million people over the past 14 years and that nearly 250,000 individuals remain missing. According to al-Sharaa, the prolonged conflict has displaced more than 14 million Syrians.
He added that the difficult experiences of regional wars over the past 25 years have led people to “better understand the true meaning of the word ‘terrorist’ and who truly deserves such a label.”
Western forces fought in Afghanistan for two decades under the banner of counter-terrorism, a period during which tens of thousands of civilians were killed.
Meanwhile, four years after the Islamic Emirate’s return to power, the international community continues to express concern about potential terrorist threats from Afghan territory, while the Islamic Emirate maintains that Afghan soil will not be used to threaten any country.
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