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Chamber claims corruption, insecurity eradicated in Afghanistan

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Officials of Afghanistan’s Chamber of Industries and Mines (ACIM) said on Tuesday that corruption and insecurity have been eradicated since the Islamic Emirate of Afghanistan (IEA) took power last year but stated that the country was dealing with a severe economic crisis.

Officials said that one example is that of factories. According to them hundreds of manufacturing businesses have closed down due to the crisis.

The sudden collapse of the former government in August last year resulted in foreign donors cutting off all funding to Afghanistan, freezing of the country’s foreign reserves and imposition of economic sanctions.

Afghanistan, which has for the past 20 years been largely reliant on foreign funding, has been hit hard by these decisions which have contributed enormously to the current humanitarian crisis.

Chamber officials meanwhile said that international sanctions on Afghanistan’s banking system have led to the closure of many factories.

“We are satisfied with the Islamic Emirate, they are trying to promote domestic products and industries. Problems we have are because of international sanctions. The problem must be solved and Afghan money must be released,” said Sakhi Ahmad Paiman, the deputy head of the ACIM.

Members of the Steel Association, which is a major electricity consumer in Afghanistan, said that they still have power supply problems but other issues, including the smuggling of raw materials, has been stopped.

“Our problems have decreased compared to the past. Our expectation is to decrease challenges regarding domestic products,” said Abdul Nasir Rishtia, a member of the Steel Association.

Economic analysts also called on the IEA to help Afghan traders expand the domestic markets.

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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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