Business
Pakistan–Afghanistan bilateral trade plunges 53% in first half of fiscal year
The steep drop is largely attributed to the closure of key crossings following clashes on October 11, which disrupted trade flows between the two neighboring countries.
Bilateral trade between Pakistan and Afghanistan declined sharply by 53 percent during the first half of the current fiscal year (July–December 2025–26), falling from $1.26 billion to $594 million, according to a report by Pakistani newspaper The Nation.
The steep drop is largely attributed to the closure of key crossings following clashes on October 11, which disrupted trade flows between the two neighboring countries.
During the period under review, Pakistan’s exports to Afghanistan fell by 55 percent, dropping from $754 million to $336 million. Imports from Afghanistan also registered a significant decline, falling by 49 percent to $258 million.
Earlier, Afghanistan’s Deputy Prime Minister for Economic Affairs, Mullah Abdul Ghani Baradar, said the country had expanded economic engagement with other regional partners amid the crossing closures. He stressed that trade with Pakistan would resume only if permanent assurances were provided to keep trade routes open.
The sharp contraction underscores growing strains in Pakistan–Afghanistan trade relations and highlights the economic impact of prolonged crossing disruptions.