Latest News
Pakistan-Afghanistan trade falls 6% to $475 million in first quarter of FY2025-26
Bilateral trade between Pakistan and Afghanistan declined by 6 percent during the first quarter of Pakistan’s 2025–26 fiscal year, totaling $475 million, compared to $502 million in the same period of 2024–25, according to official data.
Pakistan’s The Nation reported that on a year-on-year basis, trade between the two neighbors also dropped by 13 percent in September 2025, reaching $177 million, down from $204 million in September 2024.
Exports decline, imports rise
Pakistan’s exports to Afghanistan saw a notable decline of 15 percent, falling from $320 million to $271 million during the July–September period. Officials attributed the drop to reduced demand and supply chain challenges.
In contrast, Pakistan’s imports from Afghanistan increased by 12 percent, rising from $182 million to $203 million, suggesting stronger Afghan export activity and higher demand for Afghan goods in Pakistan.
As a result, Pakistan’s trade surplus with Afghanistan narrowed, driven primarily by the sharper fall in exports relative to overall trade volume.
Monthly and yearly trends
On a year-on-year (YoY) basis, Pakistan’s exports to Afghanistan dropped sharply by 36 percent, from $128 million to $81 million, while imports from Afghanistan grew 26 percent, from $76 million to $96 million.
Month-on-month, total trade grew 19 percent, from $149 million in August to $177 million in September 2025.
During that same period, Pakistan’s exports fell 8 percent, while imports surged 56 percent, reflecting a widening shift in trade dynamics.
Export performance by category
Despite the overall decline, several key Pakistani export categories saw strong growth during the first quarter of FY2025-26:
Prepared animal fodder and oil cakes: up 557%, from $0.7 million to $4.59 million
Fruits and vegetables (mainly mangoes): up 140%, from $9.22 million to $22.10 million
Animal or vegetable fats and oils: up 72%, from $6.14 million to $10.58 million
Cement: up 41%, from $20.65 million to $29.06 million
Wood and articles: up 29%, from $9.52 million to $12.32 million
Plastics and articles: up 42%, from $5.07 million to $7.19 million
Pharmaceutical products: up 10%, from $40.61 million to $44.68 million
Declining exports
Several traditional export commodities, however, experienced steep declines.
Sugar exports dropped 100%, from $69.75 million to zero
Malt extract: down 84%, from $7.51 million to $1.22 million
Tractors: down 61%, from $3.63 million to $1.41 million
Miscellaneous edible food preparations: down 53%, from $13.89 million to $6.47 million
Rice: down 21%, from $64.11 million to $50.55 million
Trade outlook
Economists note that while Afghan exports to Pakistan are rising, the drop in Pakistan’s exports could reflect supply disruptions, pricing pressures, or evolving trade routes following new customs and transit policies.
Bilateral trade between the two countries has historically fluctuated due to border closures, political tensions, and shifting regional logistics networks. However, both Islamabad and Kabul have expressed interest in stabilizing trade flows through new mechanisms under the Afghanistan–Pakistan Transit Trade Agreement (APTTA) and expanded regional connectivity initiatives.
Latest News
Khalilzad calls for end to Pakistan’s ‘double game’, urges new chapter with Afghanistan
“Playing this double game must stop,” Khalilzad wrote, adding that it was time for Afghanistan and Pakistan to “turn a new page.”
Former U.S. Special Representative for Afghanistan Reconciliation Zalmay Khalilzad has called for an end to what he described as Pakistan’s “double game” over its alleged support for militant groups operating in Afghanistan, urging the two neighbouring countries to open a new chapter in their relations.
In a post on X, Khalilzad said he believed the past 30 years had demonstrated a significant gap between Pakistan’s public statements and its actions regarding armed groups involved in fighting in Afghanistan.
Referring to the period of the U.S. military presence in Afghanistan, Khalilzad alleged that Pakistan provided sanctuary and support to militants fighting U.S. and Afghan forces while publicly denying doing so.
“Playing this double game must stop,” Khalilzad wrote, adding that it was time for Afghanistan and Pakistan to “turn a new page.”
He called for greater economic cooperation and development between the two countries and said they should agree not to allow their respective territories to be used to threaten each other’s security.
Khalilzad’s comments come amid renewed tensions between Kabul and Islamabad over cross-border militancy and security allegations.
Pakistan has repeatedly accused the Islamic Emirate of Afghanistan of allowing Tehreek-e-Taliban Pakistan (TTP) and other militant groups to operate from Afghan territory. Kabul has denied providing sanctuary to groups planning attacks against Pakistan.
The dispute has increasingly spilled into military confrontation. Pakistan carried out airstrikes in Afghanistan on September 21, saying it had targeted militant positions, while Afghan officials and the United Nations said three civilians, including a woman and a girl, were killed. Pakistan said the strikes killed 28 militants.
Islamabad has also continued to accuse Kabul of failing to prevent attacks originating from Afghan territory. Pakistani authorities have said their military actions are carried out in response to security threats and in self-defence.
Pakistan, meanwhile, has rejected recent Afghan allegations that its security forces or intelligence agencies were involved in violence in Afghanistan’s Nuristan province, calling the claims baseless.
Against this backdrop, Khalilzad said improved relations should focus on economic cooperation, development and mutual security guarantees, with neither country allowing its territory to be used against the other.
Latest News
Afghanistan central bank and ACGF sign cooperation agreement
Da Afghanistan Bank (DAB) and the Afghan Credit Guarantee Foundation (ACGF) have signed a cooperationmemorandum of understanding (MoU) aimed at strengthening the financial sector and expanding access to financial resources for small, medium and large businesses.
The agreement was signed during a ceremony at the DAB Supreme Council Hall, where DAB First Deputy Governor Sediqullah Khalid said such agreements create opportunities to provide suitable and diverse Islamic financial services to citizens and expand access to financing for small and medium-sized enterprises.
Khalid said that under the agreement, banks and financial institutions will initially receive technical and professional support. He added that five banks and one microfinance institution will receive grants worth around $1 million in the first phase to support financing for small and medium-sized businesses.
He said other banks and financial institutions that meet the required criteria would benefit from the grants and related facilities in later phases.
Khalid also said that attention would be given to facilitating the creation and financing of small businesses for Afghans returning from other countries.
Under the agreement, the two sides will cooperate on strengthening the financial sector, expanding access to financial resources for businesses, promoting Islamic financial services and building the capacity of financial institutions.
Technical and professional assistance, training programs and capacity-building opportunities will also be provided to banking and non-banking financial institutions.
Roger Thomas Piltzer, chairman of the ACGF Board of Trustees, also welcomed the agreement and stressed the importance of continuing and expanding cooperation with Da Afghanistan Bank.
The agreement aims to establish a framework for cooperation between the two sides to strengthen Afghanistan’s financial sector, expand access to Islamic financial services and provide financial resources for small and medium-sized businesses.
Latest News
Tajikistan reaffirms support for peace and stability in Afghanistan
Tajikistan has reaffirmed its support for the Afghan people, stressing that peace, stability and economic opportunities in Afghanistan are closely linked to security and sustainable development in the region.
Speaking at the 81st session of the United Nations General Assembly in New York on Saturday, Tajik Foreign Minister Sirodjiddin Muhriddin said lasting security and sustainable development in the region are closely connected to the situation in Afghanistan.
“Afghanistan needs peace, stability and economic opportunity,” Muhriddin said.
He added that Tajikistan would continue to support the Afghan people and constructive regional cooperation aimed at achieving a peaceful and stable Afghanistan.
“When Tajikistan speaks about peace, we also speak from experience,” Muhriddin said.
-
Regional4 days agoIran airlines cancel flights as US sanctions hit
-
Sport4 days agoAfghanistan open Asian Games cricket campaign with win over Japan
-
World4 days agoTrump welcomes Chinese President Xi as US-China summit gets underway
-
Latest News1 day agoAfghanistan says 28 killed, 32 captured in Nuristan operation
-
World1 day agoTrump rejects Iranian proposal to open Hormuz and end fighting
-
Sport1 day agoAfghan bodybuilder Ali Bilal finishes runner-up at Mr Olympia for third straight year
-
Latest News4 days agoKhalilzad warns Pakistan-Afghanistan tensions likely to worsen after fresh airstrikes
-
Sport2 days agoAfghanistan to face India in Asian Games cricket quarter-final
