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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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Iran expels over 200,000 undocumented Afghan migrants in past five months
Ali Zeynivand, spokesperson for Iran’s Interior Ministry, has said that the process of repatriating undocumented Afghan migrants continues despite recent developments and crises in the region.
He stressed that the process does not target all Afghan nationals, but is aimed at managing the presence of foreign nationals in Iran and determining their legal residency status.
Zeynivand said some undocumented foreign nationals have been expelled from Iran based on judicial orders, while efforts to register and return others without legal documents are continuing.
According to Zeynivand, more than 200,000 undocumented Afghan migrants have voluntarily left Iran over the past five months.
He added that the main objective of the plan is to establish accurate records of foreign nationals, including how and through which border crossing they entered Iran, where they live and which public services they use.
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Pezeshkian says Afghanistan, Pakistan helped Iran prevent infiltration into Iran
Iranian President Masoud Pezeshkian has said that Afghanistan and Pakistan cooperated with Tehran during the recent conflict to prevent individuals from using their territories to enter Iran and create unrest.
Speaking in a press conference on Saturday, Pezeshkian said Pakistan was cooperating with Iran “fully” while Afghanistan had also provided significant cooperation. He added that Turkmenistan, Russia and Iraq had helped Iran, while dialogue with Azerbaijan continued despite political differences.
Pezeshkian said regional cooperation had played an important role in helping Iran cope with the impact of the war and restrictions on the country.
The Iranian president also accused Iran’s adversaries of attempting to create insecurity along the country’s northwestern and southeastern borders, including plans to attack border posts and send armed individuals into Iran.
He said the plans were unsuccessful, partly because Iran responded to some of the efforts and because neighboring countries took measures to prevent individuals from using their territory to enter Iran.
Pezeshkian specifically highlighted the role of Afghanistan and Pakistan, saying both governments had deployed groups to monitor the situation along their territories.
According to the Iranian president, both countries had also made clear that no one would be permitted to use their soil to enter Iran and cause unrest inside the country.
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Ariana Airlines brings $2.3 million Boeing 737 engine from US to Kabul
The airline said the delivery represents an important step in strengthening its technical and operational capacity and supporting the continued operation of its fleet.
Ariana Afghan Airlines has brought a Boeing 737 aircraft engine from the United States to Kabul following continued efforts by the airline’s leadership to complete the shipment.
According to Ariana Afghan Airlines’ media office, the engine had been held up in the United States due to customs procedures. Following completion of the required process, the engine was cleared and transported to Kabul.
The engine was purchased from US-based Global Engine for $2.3 million. Ariana’s technical team is expected to install the engine on one of the airline’s Boeing 737 aircraft following its arrival.
The airline said the delivery represents an important step in strengthening its technical and operational capacity and supporting the continued operation of its fleet.
Ariana Afghan Airlines’ leadership said it is also working to accelerate the procurement of additional spare parts and technical equipment required to maintain and support the airline’s aircraft and operations.
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