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Afghanistan–India bilateral trade over $1 billion in 2024-25 fiscal

India has reaffirmed its role as Afghanistan’s top export destination, a position driven largely by imports of agricultural products, including dried fruits, nuts, and medicinal herbs.

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Bilateral trade between Afghanistan and India surged past $1 billion in the financial year 2024–25, underscoring resilient economic ties amid regional instability and humanitarian challenges.

According to figures released by India’s Ministry of Commerce and Industry, total trade between the two countries totaled $1.0087 billion between April 2024 and March 2025.
Imports from Afghanistan stood at $689.81 million—marking a 7.4% year-on-year increase—while Indian exports totaled $318.91 million.

India has reaffirmed its role as Afghanistan’s top export destination, a position driven largely by imports of agricultural products, including dried fruits, nuts, and medicinal herbs.
Trade analysts credit India’s zero-tariff regime on Afghan goods as a critical factor enabling continued access to the Indian market, particularly for small-scale Afghan producers.

This preferential trade access is proving to be a lifeline for Afghanistan’s agricultural sector, with many farmers reportedly shifting from illicit opium cultivation to alternative crops supported by reliable demand from Indian buyers.
However, experts caution that the long-term success of such transitions depends on access to quality inputs, fair pricing mechanisms, and sustained institutional support.

The country remains gripped by a deepening humanitarian crisis exacerbated by mass deportations of Afghan refugees from neighboring Pakistan and Iran. The growing pressure on already limited resources is impeding both economic recovery and broader development efforts.

Despite these challenges, the expanding trade relationship with India represents a rare economic bright spot for Afghanistan.
Observers suggest it could serve as a foundation for broader regional cooperation.

 

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Ghulam Khan border crossing in Khost temporarily reopened after two-week closure

The crossing had been closed by Pakistani authorities nearly two weeks ago without any formal explanation.

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The Ghulam Khan border crossing in Afghanistan’s southeastern Khost province has been officially reopened for a period of 15 days, following a two-week closure that disrupted trade between Afghanistan and Pakistan, according to Border Police spokesperson Abidullah Uqab Farooqi.

Farooqi stated on Tuesday, July 16, that the temporary reopening would allow for the resumption of cargo transportation and trade activities between traders and freight companies. He emphasized that the move will help prevent further spoilage of perishable goods that had been stuck at the border.

Ghulam Khan is considered one of the most critical trade gateways between Afghanistan and Pakistan. It plays a vital role in the transportation of essential goods and raw materials between the two neighboring countries.

The crossing had been closed by Pakistani authorities nearly two weeks ago without any formal explanation. The abrupt shutdown caused significant disruptions for Afghan traders and truck drivers, with many reporting financial losses due to delayed shipments and rotting goods.

While the border has now reopened temporarily, Pakistani officials have yet to issue any formal statement regarding either the initial closure or the rationale behind its reopening.

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Afghanistan-Pakistan trade surges 25% to nearly $2 billion in 2024

The growth was largely driven by a 31 percent increase in Pakistani exports, which rose to $1.391 billion, while imports from Afghanistan grew by 13 percent, reaching $607 million

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Pakistan trade

Bilateral trade between Afghanistan and Pakistan rose by 25 percent in the fiscal year 2024–25, reaching $1.998 billion, up from $1.603 billion the previous year, a Pakistani official told local media.

The growth was largely driven by a 31 percent increase in Pakistani exports, which rose to $1.391 billion, while imports from Afghanistan grew by 13 percent, reaching $607 million, The Nation reported.

Among Pakistan’s top-performing exports was sugar, which saw a staggering 4,333 percent increase, climbing from $5.93 million in FY2023–24 to $262.77 million.

Other key exports included construction materials, textiles, and pharmaceuticals.
However, some products—including rice, eggs, salts, electrical equipment, and footwear—recorded year-on-year declines of between 17 and 99 percent.

On a monthly basis, June 2025 marked a strong finish, with exports rising 90 percent year-on-year to $142 million, up from $75 million in June 2024. Imports, however, fell by 29 percent year-on-year and by 54 percent compared to May 2025.

Overall, June 2025 bilateral trade stood at $158 million, reflecting a 62 percent year-on-year increase and a 9 percent rise month-on-month, suggesting momentum in trade ties despite fluctuations in certain import categories.

Analysts attribute the surge to improved regional connectivity, enhanced trade facilitation, and greater demand for Pakistani goods in Afghan markets.

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Iran’s non-oil exports to Afghanistan totaled $510 million in first quarter

A technical meeting in Kabul on April 10 reviewed progress on the Tehran-Kabul economic pact, focusing on trade, transit, mining, and agriculture.

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trucks from Iran

Iran exported $510 million in non-oil goods to Afghanistan between March 21 and June 21, making it Iran’s fifth-largest export destination, according to the Iran Customs Administration.

Officials and business leaders emphasized the growing trade relationship was key to regional stability. At a recent Iran-Afghanistan trade conference, ICCIMA’s deputy head, Payam Baqeri, called for a deeper economic partnership, citing shared history and complementary resources—such as Iran’s industrial infrastructure and Afghanistan’s mineral wealth.

Baqeri also highlighted efforts to expand trade through joint ventures, workforce development, and easing trade barriers. Meanwhile, Iran’s Agriculture Minister expressed readiness to boost cooperation in agricultural services and called for a joint committee to advance bilateral ties.

A technical meeting in Kabul on April 10 reviewed progress on the Tehran-Kabul economic pact, focusing on trade, transit, mining, and agriculture.

Bilateral trade between the two countries surged by 84% in 2024, reaching $3.2 billion.

Iran exported $3.14 billion worth of goods—mostly oil products, steel, food, and construction materials—while Afghanistan’s exports to Iran, mainly raw and agricultural products, grew by 116% to $54 million.

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