Business
ADB report states 70% of Afghan transit trade diverted through Iran
The Asian Development Bank (ADB) said in a recent report that although Afghanistan has traditionally relied on Pakistan as a gateway to international shipping routes, recent trends indicate that 70 percent of Afghan transit trade is now diverted through Iran.
The ADB’s Corridor Performance Measurement and Monitoring (CPMM) Annual Report 2019, published this week, stated that Pakistan is still facing challenges in terms of removing barriers for road transport.
This shift away from Pakistan has been driven by lower costs from foreign ports and more attractive security deposit and detention tariffs for transit containers from shipping lines that operate at Iran’s seaports.
The report stated that in addition, diesel fuel in Iran ($0.06 per liter) is significantly less expensive than in Pakistan ($0.86 per liter), which provides an additional edge in terms of cost competitiveness.
Also, in the absence of a formal agreement with Pakistan, shippers and carriers face uncertainty in transit procedures, it added.
The report further stated that the CPMM trade facilitation indicator (TFIs) reported longer average border-crossing time, although relatively unchanged average border-crossing cost.
Total average transport cost showed an improvement, but both measures of speeds showed that trucks did not move as fast compared to 2018. The average border-crossing time between Afghanistan and Pakistan increased to 38.2 hours.
The time to cross Chaman was 60.1 hours, ranked as the most time-consuming border crossing point in 2019.
Peshawar took 45.8 hours and ranked the third most time-consuming, the report stated.
These samples were estimated from commercial shipments carrying goods destined for Afghanistan as well as Central Asia.
Following the approval of its National Transport Policy in 2018, Pakistan embarked on a series of reforms and initiatives to address structural inefficiencies and impediments, to increase exports through lowering cost and lead time of transportation.
The report recommended the implementation of the national single-window system and port community system (PCS) to reduce cargo dwell time in seaports.
It said better parking area design and queuing systems could improve efficiency and speed up border crossing.
Pakistan does not yet have a domestic regulation on the international carriage of goods on road, which is a fundamental condition to implement the Carriage of Goods by Road (CMR).
The report also stated that greater adoption of freight on rail and inland waterways would reduce freight costs and boost low-unit value exports such as agricultural produce.
Afghanistan and Pakistan have however reactivated talks on the Afghanistan–Pakistan Transit Trade Agreement 2010, which aims to attract transit from Central Asia to seaports south of Pakistan, the report stated.
Business
Tajik investors express interest in cement production in Afghanistan
A delegation of Tajikistani investors has expressed interest in establishing a cement production factory in Afghanistan, signaling renewed economic engagement between the two neighbors after four years of limited activity.
The delegation met with Hedayatullah Badri, Afghanistan’s Minister of Mines and Petroleum, to discuss potential investment opportunities in the country’s mining and industrial sectors. Officials said the visit reflects Tajikistan’s increasing willingness to expand economic cooperation with Afghanistan.
During the meeting, the Tajik investors praised the Islamic Emirate for what they described as improved security and a more conducive investment environment across Afghanistan.
Minister Badri welcomed the investors’ proposal and assured them of the government’s full support, emphasizing that Afghanistan is ready to facilitate investment through streamlined procedures and favorable conditions.
Representatives of Afghanistan’s private sector also view the development as a positive step toward strengthening bilateral economic ties.
Abdul Jabbar Safi, head of the Afghanistan Industries Association, said:
“After four years, Tajikistan is looking to take part in Afghanistan’s economic sector. This is encouraging news for the governments and the people of both countries.”
Economic experts believe that deeper economic engagement between Afghanistan and Tajikistan could unlock significant mutual benefits.
Nazir Ahmad Khalil, an economic analyst, said: “Tajikistan and Afghanistan share language, culture and geography. Expanding trade and investment between the two countries can meaningfully improve their economic situations. Building trust will be essential for long-term cooperation, and such investment can play a major role in poverty reduction and confidence-building.”
This new chapter of economic cooperation between Afghanistan and Tajikistan comes at a time when, since the return of the Islamic Emirate to power, several major projects have been launched between Afghanistan and Central Asian states.
The leadership of the Islamic Emirate has repeatedly emphasized that it seeks to strengthen economic relations with neighboring countries, the region, and the wider world on the basis of mutual respect.
Business
Trade bodies warn almost 11,000 Afghan transit containers stuck at Karachi port
SCCI officials urged authorities to separate trade from political tensions and immediately launch dialogue to restore commercial traffic between the two countries.
Trade bodies report that nearly 11,000 Afghan transit trade containers are stranded at Karachi port, while thousands more— including shipments of perishable goods—remain stuck at the Ghulam Khan, Spin Boldak, Kharlachi, and Torkham crossings between Afghanistan and Pakistan.
Traders involved in Pakistan–Afghanistan bilateral and transit commerce say they have suffered billions of Pakistani rupees in losses as the prolonged border shutdown continues to stall the movement of goods. Perishable food items have already begun to spoil, compounding financial losses.
They also report a sharp drop in bilateral trade volumes. Exporters who were already issued Form-E certificates have been unable to dispatch consignments, with the closure now nearing two months.
Sarhad Chamber of Commerce and Industry (SCCI) President Junaid Altaf said trade—already limited—has deteriorated further due to the closure of crossings. He estimated losses of roughly $45 million since the Torkham closure began, adding that the halt is damaging for both economies and directly affecting families whose livelihoods depend on trade.
SCCI officials urged authorities to separate trade from political tensions and immediately launch dialogue to restore commercial traffic between the two countries.
In recent weeks, repeated closures of the Pakistan–Afghanistan crossing have also brought pharmaceutical exports to a halt, putting nearly $200 million worth of medicines at risk. Hundreds of trucks carrying antibiotics, insulin, vaccines, and cardiovascular drugs remain stuck at Torkham and Chaman, with temperature-sensitive supplies facing potential spoilage.
The Pakistan Pharmaceutical Manufacturers Association (PPMA) warned that the disruption extends far beyond Afghanistan’s medicine supply. Afghanistan is Pakistan’s main overland route to Uzbekistan, Tajikistan, Turkmenistan, and Kazakhstan, and ongoing shutdowns are undermining key regional connectivity projects, including the Pakistan–Uzbekistan–Afghanistan railway.
Stakeholders are calling for urgent steps to reopen the crossings, warning that prolonged closures threaten not only pharmaceutical exports but Pakistan’s broader economic engagement across the region.
Business
Pakistan’s citrus export crisis deepens amid ongoing Afghanistan trade route closure
Afghanistan, which absorbs around 60% of Pakistan’s citrus exports, has remained closed to trade since mid-October.
Pakistan’s citrus sector is facing a worsening export crisis as the closure of the Afghanistan crossing continues to block access to its largest market.
Despite the start of the 2025 citrus season, exports are set to fall further from an already steep decline — dropping from $211 million in fiscal year 2021 to just $92.5 million in fiscal year 2025.
Afghanistan, which absorbs around 60% of Pakistan’s citrus exports, has remained closed to trade since mid-October.
This year alone, Pakistan shipped 153,683 tonnes of citrus to Afghanistan, while exports through the Afghan transit route also supply Russia, Kazakhstan, and Uzbekistan. With that corridor shut, exporters warn that the bulk of Pakistan’s kinnow harvest could go unsold.
A temporary policy exemption now allows citrus shipments to transit through Iran, but exporters say volumes to Central Asia and Russia cannot compensate for the loss of the Afghan market.
The crisis, however, goes deeper than the current crossing closure situation. Pakistan’s citrus industry continues to suffer from long-standing structural challenges — including reliance on the outdated, seeded kinnow variety that makes up over 90% of exports.
Climate change, rising pest pressure, shrinking yields, and declining A-grade fruit quality have all eroded competitiveness. Yields have fallen to about six tonnes per acre, and nearly half of kinnow processing units have closed.
Global competitors such as Egypt, China, Spain, Morocco, and Brazil have overtaken Pakistan by introducing new seedless, high-yielding varieties with longer harvest windows. As profits shrink, farmers are abandoning citrus orchards: the cultivated area has dropped 16% in the past five years.
Experts say Pakistan must urgently invest in developing seedless, climate-resilient varieties and strengthen existing research centres. At the same time, trade officials need to diversify export destinations by securing new sanitary and phytosanitary agreements to reduce dependence on a single market.
Without structural reforms and diversified access, Pakistan’s signature fruit risks losing its place in global markets — and its farmers risk losing their livelihoods.
-
4 days agoIran seeks broad expansion of cooperation with Afghanistan
-
Sport3 days agoILT20: Desert Vipers edge Gulf Giants in historic super over thriller
-
Business4 days agoPakistan’s citrus export crisis deepens amid ongoing Afghanistan trade route closure
-
Latest News5 days agoDoha Forum: Dialogue between Afghanistan and Pakistan key to regional connectivity
-
Regional3 days agoSix Pakistani soldiers killed in TTP attack in Kurram District
-
Business3 days agoTrade bodies warn almost 11,000 Afghan transit containers stuck at Karachi port
-
Latest News4 days agoUS reviews green cards from 19 countries; Suspends Afghan-related processing
-
World4 days agoPowerful 7.6 earthquake hits northern Japan, tsunami warnings issued
