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

2 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

Pakistan, China plan to extend CPEC to Afghanistan, revive trilateral framework

The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics.

Published

1 day ago

January 31, 2026

Ariana News

Pakistan and China are moving forward with plans to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan, a strategic step aimed at bolstering regional connectivity and economic cooperation. The expansion, along with the revival of the Pakistan-China-Afghanistan trilateral framework, was discussed in a recent briefing to the Pakistani Senate Standing Committee on Foreign Affairs.

According to Pakistan Today, officials from Pakistan’s Ministry of Foreign Affairs outlined the details during a session in Islamabad, where they reviewed key aspects of Pakistan’s foreign relations, regional developments, and economic diplomacy.

Officials emphasized that Pakistan’s relationship with China remains strong, underscoring the “all-weather” strategic partnership between the two nations. Strengthening ties with Beijing, they stated, continues to be a cornerstone of Pakistan’s foreign policy. This includes unwavering support for China’s position on regional and international issues, particularly the One-China policy and matters related to territorial integrity.

The briefing also touched upon China’s consistent backing of Pakistan in various areas, including sovereignty, economic stability, counter-terrorism, and support for Pakistan’s exit from the Financial Action Task Force (FATF) grey list.

The Kashmir issue was also addressed, with officials noting that China considers it an unresolved matter and advocates for a peaceful resolution in line with UN Security Council resolutions.

The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics. Officials stated that reviving the trilateral framework is part of broader efforts to foster greater cooperation and connectivity in the region, with an eye on long-term stability and prosperity.

The move also reflects both countries’ desire to further integrate Afghanistan into the regional economic landscape, a key element in fostering peace and development.

Business

Uzbekistan–Afghanistan trade rises to $1.6 billion in 2025

Trade relations remain largely export-driven, with Uzbekistan supplying Afghanistan primarily with food products, energy resources, and industrial goods.

Published

2 days ago

January 30, 2026

Ariana News

Trade between Uzbekistan and Afghanistan rose sharply in 2025, reaching $1.6 billion, according to official data released by Uzbekistan’s National Statistics Committee.

The figure represents a 45.5 percent increase from $1.1 billion in 2024 and an 84.4 percent rise compared with 2023, when bilateral trade stood at $867.5 million, highlighting rapid growth in economic exchanges between the two countries.

Uzbekistan’s exports to Afghanistan accounted for the vast majority of the trade volume, totaling $1.5 billion, or 93.8 percent of overall bilateral turnover. Trade relations remain largely export-driven, with Uzbekistan supplying Afghanistan primarily with food products, energy resources, and industrial goods.

The surge in trade comes as Uzbekistan’s total foreign trade turnover reached $81.2 billion in 2025, reflecting broader efforts to expand and diversify external economic ties. By the end of the reporting period, Uzbekistan maintained trade relations with 210 countries.

China remained Uzbekistan’s largest trading partner, accounting for 21.2 percent of total trade, followed by Russia (16.0 percent), Kazakhstan (6.1 percent), Türkiye (3.7 percent), and the Republic of Korea (2.1 percent).

The latest figures underscore strengthening economic ties between Uzbekistan and Afghanistan amid efforts to boost regional trade and connectivity.

Business

Turkish firm eyes investment in Afghanistan’s power infrastructure

Technical assessments are also planned in various provinces to evaluate the potential for increased electricity generation from existing water resources.

Published

3 days ago

January 29, 2026

Ariana News

A Turkish electrical equipment company has expressed strong interest in investing in Afghanistan’s hydropower sector, focusing on the installation of new-technology turbines and the rehabilitation of existing power generation facilities, according to Da Afghanistan Breshna Sherkat (DABS).

DABS Chief Executive Officer, Abdul Haq Hamkar, met with Mr. Günay Küsay, a senior engineer and representative of Turkey’s Marbeyaz company, to discuss potential cooperation in hydropower development, modernization of equipment, and the installation of advanced electricity generation systems.

During the meeting, Hamkar welcomed the Turkish delegation and said that all necessary facilities and incentives have been put in place to encourage both domestic and foreign investment in Afghanistan’s electricity and electrical equipment production sectors. He emphasized that investors are free to invest across relevant fields within the energy sector.

Mr. Küsay praised the leadership of DABS and said Marbeyaz is keen to invest in electricity generation from Afghanistan’s water resources, rehabilitate existing hydropower turbines, install modern high-capacity turbines, and contribute to strengthening the technical capacity of local staff.

At the end of the meeting, both sides agreed to hold joint technical sessions between DABS and Marbeyaz experts. Technical assessments are also planned in various provinces to evaluate the potential for increased electricity generation from existing water resources.

DABS said that improved security, economic stability, and transparent governance have helped create a more favorable environment for international companies to invest in Afghanistan’s power generation and electrical equipment production sectors.