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

7 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

Afghanistan chamber, India’s ASSOCHAM sign MoU to enhance trade and investment cooperation

Published

3 days ago

June 24, 2026

Ariana News

The Afghanistan Chamber of Commerce and Investment (ACCI) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM) have signed a memorandum of understanding (MoU) aimed at strengthening bilateral trade, investment, and business cooperation between India and Afghanistan.

The agreement was signed in New Delhi by Saurabh Sanyal, Secretary General of ASSOCHAM, and Sayed Mohammad Karim Hashemi, Chairman of ACCI, during a meeting between business leaders from the two countries, ASSOCHAM said in a statement.

The Afghan delegation, led by Hashemi, held discussions with Nirmal Kumar Minda, President of ASSOCHAM, and other officials on ways to expand bilateral trade, investment flows, and private-sector cooperation.

According to ASSOCHAM, the MoU seeks to strengthen institutional collaboration, promote business-to-business linkages, and facilitate greater trade and investment opportunities between India and Afghanistan.

The organization said it remains committed to fostering stronger economic ties and creating new avenues of cooperation between the business communities of both countries.

Business

Kazakhstan signs $18.8 million zinc ore supply agreement with Afghan company

Published

4 days ago

June 23, 2026

Ariana News

Kazakhstan has signed a major zinc ore supply agreement with an Afghan company as the two countries continue to expand economic cooperation and trade ties.

According to Kazakhstan’s Ministry of Trade and Integration, the contract was signed between Kazakhstan’s ShalkiyaZinc and Afghanistan’s Afghan German Bakhtar Company during the opening of the Kazakhstan Trade House in Kabul.

The signing took place as part of an official business mission led by Kazakhstan’s Deputy Prime Minister and Minister of National Economy, Serik Zhumangarin.

Under the agreement, Afghan German Bakhtar Company will supply approximately 30,000 tons of zinc ore annually on DAP (Delivered at Place) terms. The ore will be used as raw material for the production facilities of Kazakhstan’s Kazzinc. The total value of the contract is estimated at $18.88 million.

The deal marks a significant step in diversifying trade relations between Kazakhstan and Afghanistan, moving beyond traditional agricultural exports into the mining and industrial sectors.

“Afghanistan today is a market of opportunities,” said Kanat Kudaibergen, Chairman of the Board of GWM Capital LTD. He noted that while Kazakhstan’s exports to Afghanistan have historically consisted mainly of flour, grain, sunflower oil, and other agricultural products, demand is increasingly growing for machinery, equipment, and service solutions in agriculture, construction, and mining.

Kudaibergen expressed confidence that the newly established Trade House in Kabul would serve as an important platform for developing new business projects and expanding Kazakhstan’s non-resource exports.

The agreement follows recent discussions between Kazakh officials and Afghanistan’s leadership, including Prime Minister Mohammad Hasan Akhund and Deputy Prime Minister Abdul Ghani Baradar, during which Kazakhstan expressed interest in sourcing zinc ore from Afghanistan.

Preparations for the deal began last year when specialists from Tau-Ken Samruk visited Afghanistan’s Bamyan province to assess the Pami-Kakrak zinc deposit. Samples collected during the visit were later analyzed by Kazzinc, which confirmed the feasibility of processing the ore at Kazakh facilities.

Economic relations between the two countries have been steadily strengthening. Kazakhstan’s Ministry of National Economy reported that bilateral trade reached $541.8 million in 2025. Both governments have set an ambitious target of increasing annual trade turnover to $3 billion in the coming years.

Business

Afghanistan officials call for investment during Indian expo visit

The event brought together officials and business representatives from more than 80 countries, showcasing agricultural, industrial, and construction products across 350 exhibition booths.

Published

4 days ago

June 22, 2026

Ariana News

Sayed Karim Hashemi, Chairman of the Afghanistan Chamber of Commerce and Investment (ACCI), has traveled to India to participate in the Bharat Buildcon International Exhibition, one of the country’s largest construction and infrastructure expos.

The event brought together officials and business representatives from more than 80 countries, showcasing agricultural, industrial, and construction products across 350 exhibition booths.

On the sidelines of the exhibition, Hashemi held meetings with Indian and international investors, business leaders, and private sector representatives to discuss expanding economic cooperation and investment opportunities in Afghanistan.

He highlighted Afghanistan’s vast reserves of construction raw materials and mineral resources, encouraging Indian and international companies to invest in the country’s mining, construction, and manufacturing sectors.

Accompanied by Afghanistan’s Ambassador to India, Noor Ahmad Noor, and Health Attaché Sayed Emad Hashemi, the ACCI chairman also visited the booths of several leading global companies.

During his visit, Hashemi toured a major traditional medicine manufacturer and emphasized the importance of expanding bilateral trade in medicinal herbs and agricultural products between Afghanistan and India.

He noted that growing demand for construction materials, combined with Afghanistan’s abundant natural resources, positions the country as an attractive destination for foreign investment, particularly from Indian companies.