Crossing closures cost Pakistani traders billions

Pakistan’s traders and exporters have suffered billions of dollars in losses following the prolonged closure of major trade crossings with Afghanistan, according to a report by Dawn.

Trade between Pakistan and Afghanistan has supported thousands of families on both sides for decades, with billions of afghanis (AFN) worth of goods, including fresh fruits and vegetables, transported through the crossings each year.

However, the closure of key crossings, including Torkham and Chaman, in October 2025 amid political and security tensions has caused significant losses for Pakistani wholesalers, traders and farmers.

Rehman Gul, a Pakistani commission agent who has worked in the agricultural trade for 21 years, told Dawn that several freight trucks belonging to traders became stranded following the closures. He said he lost around 110 million Pakistani rupees in payments already made for goods and transportation.

Gul said traders are now losing between one million and 1.5 million rupees every day, while the disruption has also contributed to higher prices for essential commodities. He said consignments of products such as lemons, chilies and garlic have spoiled after remaining trapped inside containers.

Ziaul Haq Sarhadi, senior vice president of the Pak-Afghan Joint Chamber of Commerce and Industry, said Pakistan exports about $1.5 billion worth of goods to Afghanistan each year. He estimated that the 10-month closure of the crossings had cost Pakistani traders nearly $1 billion.

Sarhadi said Afghanistan remains one of Pakistan’s closest and most important export markets, with Pakistani exporters often receiving advance payments after orders are confirmed.

He added that Pakistani exports to Central Asian countries through Afghanistan are worth about $800 million annually. The suspension of transit trade has caused an estimated $225 million in losses for Pakistani exporters over the past 10 months, he said.

The disruption has also increased the cost of importing cotton, pulses and other commodities from Central Asia, which were previously transported through Afghanistan at comparatively lower costs.

Sarhadi said Afghan exports to India through the Wagah border are worth around $300 million annually, with Afghan exporters suffering losses of nearly $200 million as a result of the suspension of transit trade.

The prolonged disruption has also affected employment, with millions of people reportedly losing jobs directly or indirectly. Sarhadi said rising unemployment has placed additional pressure on the law-and-order situation in Pakistan’s Khyber Pakhtunkhwa province.

Karachi’s ports remain a major hub for Afghan transit trade, with around 40,000 to 45,000 containers passing through Pakistan for Afghanistan each year. Pakistan earns approximately $160 million annually from the transit trade.

Sarhadi estimated that Pakistan has lost about $106 million because of the closure. He said around 10,000 transit containers remained stranded in Pakistan between October 2025 and April 2026, generating substantial demurrage and detention charges.

With an average penalty of about $120 per container per day, Afghan importers were facing additional costs of roughly $1.2 million every day.

The prolonged closure has therefore become a major economic burden for businesses on both sides of the border. The business community is urging Islamabad and Kabul to keep trade separate from political disputes, reopen Torkham and Chaman, and restore the commercial routes that support businesses, employment and livelihoods across the region.