Pakistan-Afghanistan trade falls 12% in July

Pakistan-Afghan trade volume fell by 12 percent on a month-on-month basis in July 2025, while year-on-year figures showed a marginal two percent decline, according to official data.

Total bilateral trade dropped to $138 million in July, compared to $158 million in June 2025. On a yearly comparison, trade slipped slightly from $141 million in July 2024.

Pakistan’s exports to Afghanistan were recorded at $102 million, a sharp 28 percent decline from $142 million in June.

Compared with July last year, exports eased by two percent from $104 million. Imports from Afghanistan, however, surged on a monthly basis, rising 129 percent from $16 million in June to $37 million in July. Year-on-year, imports dipped by 3 percent from $38 million in July 2024.

Sector-wise, several Pakistani exports to Afghanistan showed strong growth.

Cement exports rose 182 percent year-on-year to $10.46 million in July 2025, while fruit and vegetable shipments climbed 215 percent to $9.63 million.

Exports of animal or vegetable oils increased 203 percent, iron and steel 180 percent, and prepared animal fodder and oil cakes 575 percent. Paper and paperboard sales more than doubled, and rice exports rose 11 percent to $19.44 million.

In contrast, sugar exports fell to zero in July, while miscellaneous food items and motorcycles dropped 82 percent, malt extracts 62 percent, and pharmaceutical products 10 percent.

On the import side, Pakistan’s purchases of Afghan agricultural products rose significantly.

Imports of grapes surged 562 percent, tomatoes 212 percent, apricots 116 percent, and cucumbers nine percent year-on-year. However, cotton imports declined 61 percent, coal 25 percent, oilseeds 52 percent, and cereals 24 percent.

Despite July’s slowdown, bilateral trade between Pakistan and Afghanistan showed strong growth in the previous fiscal year.

In FY2024-25, trade volume reached $1.99 billion, a 25 percent increase from $1.60 billion in FY2023-24. Pakistan’s exports drove much of this growth, rising 31 percent to $1.39 billion, while imports from Afghanistan increased 13 percent to $607 million.

Among the standout performers was sugar, whose exports skyrocketed by over 4,300 percent to $262.77 million in FY2024-25 from just $5.93 million a year earlier.