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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.
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Afghanistan and Russia discuss expanding economic cooperation and boosting investment
Afghanistan’s Prime Minister, Mullah Mohammad Hassan Akhund, met with Russian Deputy Prime Minister Alexey Overchuk in Kabul on Thursday evening, emphasizing the need to strengthen bilateral relations and expand economic cooperation between the two countries.
According to a statement from the Presidential Palace, several senior officials from both countries attended the meeting, including Afghanistan’s Foreign Minister Amir Khan Muttaqi and representatives of Russia’s political and economic sectors.
Akhund described Afghanistan’s security and stability as favourable conditions for foreign investment and thanked Moscow for recognizing the Islamic Emirate and supporting Afghanistan in international forums.
Meanwhile, Overchuk praised the security situation and developments in Afghanistan, expressing Russia’s interest in investing in various sectors of the country.
He said around 70 representatives of Russia’s private sector were accompanying the delegation and were expected to hold discussions with relevant ministries and institutions of the Islamic Emirate on trade and investment agreements, as well as ways to address existing obstacles.
The Russian deputy prime minister reaffirmed his country’s support for Afghanistan in various fields.
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Afghanistan and Russia sign 15 economic cooperation agreements worth $103 million
Afghanistan’s private sector and the Russian Federation have signed 15 economic cooperation agreements worth a total of $103 million.
The agreements were signed in the presence of Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, and Alexey Overchuk, Russia’s Deputy Prime Minister.
Under the agreements, the two sides will cooperate in importing medicines, wheat, flour, and cooking oil into Afghanistan, as well as exporting fresh Afghan fruits, particularly pomegranates, to Russia.
Expanding bilateral trade relations and developing economic cooperation in various sectors are also among the key areas covered by the agreements.
According to officials, the agreements will facilitate two-way exports and imports between the two countries.
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UN warns of deepening water crisis in central Afghanistan amid climate change
The United Nations has warned of worsening water shortages, the impacts of climate change and inadequate infrastructure in Afghanistan’s central highland regions, highlighting growing challenges facing communities in remote areas.
Rabab Fatima, the UN Secretary-General’s Special Representative in Afghanistan, raised the concerns during a visit to Bamyan province, where she assessed the living conditions and challenges facing local communities.
Fatima said poor road networks and inadequate infrastructure in remote areas have made it increasingly difficult for residents to access essential services, including healthcare and education.
During her visit to the mountainous central regions of Afghanistan from November 2 to 4, she met with local communities to discuss their daily challenges, as well as opportunities for improving livelihoods and access to basic services.
She also stressed the need to expand healthcare services, establish more medical facilities in underserved areas and strengthen support for girls’ education.
Fatima praised the enthusiasm of students in Bamyan for education and highlighted the growing participation of women in business, describing these developments as encouraging signs for the region’s future.
She called for equal educational and economic opportunities for girls and women, emphasizing the importance of ensuring that remote communities are not left behind.
The visit comes as Afghanistan’s central highlands continue to face significant challenges linked to climate change, water scarcity and limited infrastructure, underscoring the need for sustained support and investment in essential services.
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