Afghanistan’s Ministry of Industry and Commerce (MoIC) has announced that the country’s foreign trade operations remain stable and uninterrupted, despite ongoing regional conflict.

In an official statement, the ministry affirmed that imports, transit, and the supply of goods with neighboring and regional countries continue as normal. It noted that no unusual fluctuations in the prices of essential commodities have been recorded in domestic markets.

The ministry dismissed recent media reports suggesting instability or shortages as unfounded, adding that trade routes through Central Asia have been reinforced. It further emphasized that strict measures are in place to prevent hoarding and market manipulation.

This announcement comes just days after the Ministry of Finance stated, on the third day of the ongoing conflict between Israel and Iran, that Afghanistan’s borders and customs with Iran remain open, and bilateral trade is proceeding without disruption. The ministry confirmed that commercial cargo operations at border points are ongoing.

In a follow-up notice, the ministry clarified that border crossings and customs checkpoints between Afghanistan and Iran are fully operational.

It explained that temporary closures at Abu Nasr Farahi (Farah Province), Nimroz, and the Iran-facing border on Saturday were due to a national holiday in Iran, and all crossings have since reopened.

The ministry also confirmed that cargo handling at Iran’s Bandar Abbas port is proceeding normally and without issues.

However, the statement acknowledged that military tensions between Iran and Israel remain high, with reciprocal attacks continuing to raise regional concerns. Despite this, Afghan officials stress that trade continuity and market stability remain a top priority, and the government is closely monitoring developments.

A breakthrough in negotiations between customs authorities and traders has led to a temporary exemption from the Certificate of Origin requirement for select Afghan imports, easing a growing trade bottleneck at the Torkham border.

Customs Collector Azood Mehdi confirmed that the agreement was reached after productive discussions with a delegation representing Afghan goods importers.

Under Pakistan’s Federal Board of Revenue (FBR) regulations, the Certificate of Origin is typically mandatory for all imports from Afghanistan to verify the provenance of goods. However, a special waiver has now been granted until June 30, 2025, for specific commodities.

The exemption applies to imports into Pakistan of cotton, beans, coal, and soapstone—categories that have faced significant disruption due to non-compliance with documentation requirements.

Prior to the exemption, 667 cargo vehicles carrying these goods were held at the Torkham crossing due to the absence of the certificate.

Under the new arrangement, these consignments will be cleared on the basis of a written affidavit provided by traders, serving as a temporary substitute for the Certificate of Origin. This measure is valid only until the June 30 deadline, after which strict enforcement of FBR documentation rules will resume.

Mehdi emphasized that the waiver is a one-time relief measure and urged traders to ensure full compliance going forward. “This decision reflects our commitment to facilitate trade while upholding regulatory standards,” he said.

The annual trade volume between Pakistan and Afghanistan has dropped sharply from $2.5 billion to just $1 billion, as ongoing border closures and inconsistent trade policies continue to strain economic ties between the two neighbors.

Zia-ul-Haq Sarhadi, Vice President of the Pakistan-Afghanistan Joint Chamber of Commerce, described the decline as “deeply concerning,” warning that Pakistan’s broader regional trade ambitions, including access to Central Asian markets, depend on a stable trading relationship with Afghanistan.

For years, Pakistan has exported essential goods to Afghanistan, including cement, steel bars, pharmaceuticals, vegetables, flour, and sugar, while importing fresh produce and other agricultural products in return.

However, persistent challenges and growing diplomatic friction between the two countries have disrupted this exchange.

A key flashpoint occurred in February when heightened tensions prompted a closure of the Pakistan-Afghanistan border.
The shutdown halted the movement of goods and people, causing significant losses in tax revenues for both nations and stalling cross-border commerce.

“The impact wasn’t just on trade numbers,” Sarhadi noted. “From Karachi’s ports to the Torkham crossing, thousands of laborers and transport workers were left jobless for days. The ripple effects hurt the most vulnerable segments of society.”

Trade experts and business leaders are urging both Islamabad and Kabul to adopt consistent and transparent trade policies, emphasizing that long-term economic cooperation is vital not only for mutual economic benefit but also for fostering regional peace and stability.

They warn that without a sustained diplomatic and economic dialogue, both countries risk further isolation and economic stagnation, especially at a time when the region faces broader geopolitical and security challenges.