Business

Afghan-Pakistani land port closures strangle import-export trade sector

The situation has worsened since Afghanistan imposed a three-month ban on medicine imports from Pakistan, further constricting trade.

Published

8 months ago

November 30, 2025

Ariana News

The ongoing crossing closure between Afghanistan and Pakistan, enforced on October 11 amid escalating tensions, has disrupted major export flows and strained multiple industries on both sides.

While analysts warn that a prolonged deadlock will further squeeze Pakistan’s export outlook, some argue the shutdown may temporarily slow the entry of smuggled goods into the country.

A leading cement producer said imports of Afghan coal and Pakistan’s cement exports to Afghanistan have completely halted. The disruption has sharply increased the price of locally sourced Darra coal, now selling at Rs42,000–45,000 per tonne compared to Rs30,000–32,000 previously. Afghan coal, priced at Rs30,000–38,000 per tonne before the land port’s closure, has disappeared from the market.

Southern cement plants already rely on imported coal, but northern mills—previously dependent on Afghan supplies—are now shifting to imports from South Africa, Indonesia and Mozambique. The cement industry consumes roughly four million tonnes of coal annually, making the shortage especially acute.

Exporters also dismissed Iran as an alternative route due to non-existent banking channels, logistical limitations, and the impossibility of shifting millions of tonnes of coal through informal means. Afghanistan accounts for roughly 7 percent of Pakistan’s total cement exports.

D.G. Khan Cement told investors that imported coal currently costs $90–100 per tonne and said it would continue relying on foreign supplies until the crossing reopens. Several manufacturers are switching to RB2 coal, a mid-range grade with more favourable pricing.

Insight Research noted that cement firms with the biggest exposure to the Afghan market include Cherat Cement (9.8% of revenues), Fauji Cement (5.8%), and Maple Leaf Cement (3.1%).

Pharmaceutical Sector Faces Mounting Losses

According to Dr Kaiser Waheed, former chairman of the Pakistan Pharmaceutical Manufacturers Association, Pakistan exports around $187 million worth of medicines to Afghanistan—out of $1.8 billion in total exports. He said informal medicine trade is roughly triple the volume of official shipments.

With the crossing closed, consignments are piling up at factories. While companies could divert unsold medicines to local markets, many products are Afghanistan-specific and not used domestically.

The Searle Company told investors that a full-year shutdown could cost the firm up to Rs2 billion. Insight Research highlighted that for five listed pharmaceutical exporters, sales to Afghanistan range from 1.9% to 8.1% of revenues, with overall exposure for some firms as high as 45%.

The situation has worsened since Afghanistan imposed a three-month ban on medicine imports from Pakistan, further constricting trade.

Container Backlogs and Logistical Gridlock

Former PAJCCI president Qazi Zahid Hussain said 700–750 containers are stranded at Chaman and another 350–400 at Torkham. Meanwhile, more than 9,000 containers remain stuck at Pakistani ports awaiting clearance, including 500 meant for Commonwealth of Independent States (CIS) markets such as Armenia, Azerbaijan and Kazakhstan.

Fruit and Vegetable Supply Shock

Pakistan exports bananas, potatoes, kinnow and mangoes to Afghanistan, and relies on Afghan transit routes to access CIS markets. Waheed Ahmed of the PFVA said the combined value of fruit and vegetable exports to Afghanistan and CIS stands at about $150 million annually.

Imports of tomatoes, onions, pomegranates, grapes and apricots from Afghanistan have also stalled, forcing traders to dump spoiled produce or sell it domestically at heavy losses.

Exporters are exploring routes via Iran, but lack of financial instruments from banks has stalled progress. The State Bank recently denied a request to waive the requirement for such instruments for exports routed through Iran.

Truck drivers meanwhile face dire conditions. PAJCCI president Junaid Makda said many have been stranded in Afghanistan for weeks, with some attacked and most suffering from food shortages and lack of cash.

The halt has also shifted fruit supply trends: pomegranates now arrive mainly from Iran, pushing prices from Rs2,000–2,500 to Rs4,000–4,500 per 10kg carton. Iranian apples and grapes are also entering the market, with 15–20 containers arriving daily.

Ghee, Cooking Oil and Flour Traders Also Affected

Before the shutdown, Pakistan exported 6,000–8,000 tonnes of ghee to Afghanistan monthly, though cooking oil exports were minimal, according to PVMA Chairman Sheikh Umer Rehan.

Flour exporters say the Afghan market has already largely shifted away from Pakistan in recent years. Former PFMA Sindh chairman Aamir Abdullah noted that Afghanistan now sources most of its wheat from Russia, Turkmenistan and Kazakhstan.

“Realistically, Pakistan has lost the Afghan wheat and flour markets—and the foreign exchange that came with it,” he said.

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Business

Uzbekistan, Kazakhstan target Afghanistan in push to expand regional trade

According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent.

Published

5 days ago

August 7, 2026

Ariana News

Uzbekistan and Kazakhstan are seeking to deepen economic cooperation and jointly expand into new regional markets, including Afghanistan, as part of broader efforts to strengthen trade and investment across Central Asia and the Middle East.

According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent, where business leaders and trade associations from both countries explored opportunities to promote their products in third-country markets, particularly Afghanistan, Syria and Iraq.

Afghanistan featured prominently in the discussions, with participants noting that Kazakhstan’s exports to Afghanistan reached nearly $500 million during the first seven months of 2025—almost matching the country’s total exports to Afghanistan for all of 2024. Officials said the long-term goal is to increase exports to $3 billion.

The forum also highlighted growing imports of mineral raw materials from Afghanistan. Participants discussed a proposed agreement to supply Afghan zinc ore to the Almalyk Mining and Metallurgical Complex in Uzbekistan.

Beyond Afghanistan, delegates examined emerging business opportunities in Syria and Iraq, where reconstruction efforts are expected to drive demand for food products, construction materials and industrial goods.

The forum also focused on improving regional logistics. Officials discussed using available capacity on Turkish freight trucks transiting Uzbekistan, a move expected to reduce transport costs and improve access to regional markets.

At the conclusion of the forum, both sides agreed to organise joint business missions to third-country markets, including Aleppo, Syria, in late September and Erbil, Iraq, in early October, with the aim of strengthening commercial partnerships and identifying new investment opportunities.

The discussions reflect growing economic cooperation between Uzbekistan and Kazakhstan as both countries seek to expand regional connectivity, diversify exports and strengthen trade links with neighbouring markets, including Afghanistan.

Business

Uzbekistan’s Fergana region strengthens economic ties with Afghanistan

The meeting followed a Fergana delegation’s visit to Afghanistan on July 26-27, during which officials and business representatives held talks in Kabul and Mazar-i-Sharif.

Published

6 days ago

August 6, 2026

Ariana News

Uzbekistan’s Fergana region is moving to deepen economic cooperation with Afghanistan after officials and business leaders agreed to fast-track joint investment projects and expand bilateral trade.

According to a statement from the Fergana Regional Administration, Governor Khayrullo Bozorov met with leading Afghan business figures, including Emerald Diamond Trading Director Abdul Hamid Anyuri, Kam Air Director Atilla Azimi, Tojmahal Petroleum Director Abdul Latif Nawruzi, and their regional partners to discuss practical measures for strengthening economic ties.

The meeting followed a Fergana delegation’s visit to Afghanistan on July 26-27, during which officials and business representatives held talks in Kabul and Mazar-i-Sharif. The delegation also inaugurated Fergana Trade Houses in both cities to promote trade and commercial cooperation.

“The parties agreed to accelerate the implementation of joint investment projects, increase bilateral trade and elevate cooperation to a new level,” the regional administration said.

Discussions focused on turning agreements reached during the Afghanistan visit into practical projects, identifying new investment opportunities, and expanding trade between the two sides. Afghan business representatives expressed interest in working with Fergana companies in key sectors including trade, agriculture, aviation, energy and logistics, while presenting several new investment initiatives.

Bozorov reaffirmed Fergana’s commitment to strengthening economic relations with Afghanistan, saying the regional administration stands ready to support joint projects and create favourable conditions for closer business cooperation.

The regional administration said the meeting reflects growing momentum in economic engagement between Uzbekistan and Afghanistan, with both sides seeking to expand cross-border trade, attract investment and develop new commercial partnerships as part of broader efforts to strengthen regional economic connectivity.

Business

Afghanistan invites Iranian investors to expand economic cooperation

Discussions focused on expanding private-sector cooperation, increasing joint investment, and boosting bilateral trade between the two countries.

Published

2 weeks ago

July 30, 2026

Ariana News

Afghanistan has invited Iranian investors to explore business opportunities and participate in joint economic projects as the country seeks to strengthen investment and trade ties with its western neighbor.

Kamaluddin Tawhidi, head of the Afghanistan-Iran Joint Chamber of Commerce, made the appeal during a visit to Iran, where he attended the “Economic Cooperation Opportunities with Afghanistan” conference in Alborz Province, according to Iran’s state broadcaster.

Speaking at the event, Tawhidi highlighted Afghanistan’s investment potential and encouraged Iranian businesses to take advantage of opportunities across a range of economic sectors.

Discussions focused on expanding private-sector cooperation, increasing joint investment, and boosting bilateral trade between the two countries.

Tawhidi said stronger economic partnerships could create new business opportunities and support broader regional economic growth.

The meeting comes as Afghanistan continues efforts to attract foreign investment and deepen economic cooperation with neighboring countries.