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Balkh factory owners concerned about ongoing economic crisis

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Balkh Chamber of Industries and Mine said that 90 percent of factories in the province are under extreme financial duress due to the economic crisis gripping Afghanistan.

According to officials, their problems stem from limited access to funds in bank accounts and to the limited support provided by the authorities.

Officials urged the Islamic Emirate of Afghanistan (IEA) to support domestic manufacturers and said if they did, export volumes would increase.

One member of the chamber said however that they were optimistic about the future.

“Factories are restarting their activities day by day. It has increased now. We are optimistic about the future. As you know factories produce employment opportunities… (factories) will impact the economy,” said Sayed Ismail Hussaini, a member of the Balkh chamber.

Some local businessmen said that they have been struggling since the takeover by the IEA in August.

“We export to European countries and to Russia. Now 80 percent of our work faced problems,” Sayed Hamidullah, head of a factory in Balkh.

Balkh women, employed in local factories, meanwhile called on the IEA to provide more job opportunities for women.

“The weather is cold, we face many problems, all should keep in mind the situation of women,” said Zaiba, one female factory worker.

“Big factories in Balkh should be reopened, because people face problems, unemployment has increased,” said Gull Chaman another woman.

“We call on the government to reopen factories in Balkh,” said Fatima.

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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.

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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.

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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.

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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.

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Afghanistan signs agreement with DP World to bolster ports infrastructure

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The Ministry of Finance of Afghanistan and UAE-based DP World have signed an investment term sheet to modernize key commercial land ports, marking a significant step in enhancing the country’s trade infrastructure.

Abdullah Azzam, Head of the Economic Affairs Office at the Office of the Prime Minister, stated that the agreement opens the door for foreign investment and new contracts.

He said that that under this agreement, Afghanistan’s ports will be modernized and equipped with cutting-edge technology.

The agreement outlines the development of cargo handling facilities, port management systems, and operations using advanced equipment in line with international standards. Hairatan Port will be upgraded in the first phase, followed by Torkham Port in the second phase, with subsequent expansion to logistics corridors, economic zones, and other national projects.

DP World officials emphasized that the modernization of these ports will not only increase trade but also create new employment opportunities.

They highlighted Afghanistan’s strategic location as a vital link between Central and South Asia and pledged continued efforts to support the country’s economic growth.

Economic analysts believe the investment will boost trade efficiency, reduce costs, and enhance the country’s transit capacity. Modernizing the ports is also expected to attract further foreign investment and strengthen Afghanistan’s overall economy.

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