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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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UNHCR representative urges continued international support for Afghanistan
The UN refugee agency’s representative in Afghanistan has called on the international community to maintain their support for Afghanistan, warning that the return of more than 6.5 million Afghans over the past three years has placed significant pressure on the country.
Arafat Jamal, UNHCR Representative in Afghanistan, made the remarks during the eighth International Conference on Action with Women and Peace in Seoul, South Korea, where he highlighted the challenges facing returnees amid poverty, drought and climate-related disasters.
He said the returning population accounts for around 15 percent of Afghanistan’s total population, describing the influx as one of the world’s largest movements of people. He added that Afghanistan was struggling to absorb the large-scale returns due to its existing economic and humanitarian challenges.
Jamal also highlighted difficulties facing Afghan women, saying that the absence of war does not necessarily mean all citizens enjoy safety.
In a separate interview with The Korea Times during his visit to Seoul, Jamal said supporting refugees and vulnerable countries was not simply an act of charity but an investment in a safer and more stable international environment.
He stressed that Afghanistan’s strategic location, bordering seven countries including China, Pakistan and Iran, makes its stability a matter of wider international concern. Although the country is relatively calm at present, he cautioned that this situation should not be taken for granted without continued international support.
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ICC halts probe into alleged crimes by US troops in Afghanistan
The court cited “significant limitations” on the prosecutor’s ability to carry out investigations and obtain evidence.
The International Criminal Court (ICC) has halted its investigation into alleged crimes committed by US troops in Afghanistan, according to court documents released on Friday.
The decision was issued on Thursday but made public a day later. The court cited “significant limitations” on the prosecutor’s ability to carry out investigations and obtain evidence.
The ruling also brings an end to the investigation into alleged crimes committed by the Islamic State group’s affiliate in Khorasan Province (ISKP).
The prosecutor’s office has appealed the decision, according to statements provided to the Associated Press and Reuters.
The decision comes amid strained relations between Washington and the Hague-based court. The United States previously imposed sanctions on 13 current and former ICC staff members over investigations into alleged crimes by US personnel and arrest warrants issued against Israeli officials.
US Secretary of State Marco Rubio had earlier said that President Donald Trump would never allow the ICC to prosecute Americans. In an October statement, Rubio also warned that Washington would continue efforts to dismantle the court until Americans were no longer at risk of prosecution.
It remains unclear whether the latest ruling will affect the US position towards the ICC. The United States is not a member of the court and does not recognise its jurisdiction.
Under the court’s founding statute, however, the ICC can prosecute individuals accused of serious international crimes committed on the territory of its member states.
The investigation into Afghanistan began in 2020.
In 2021, the then ICC prosecutor, Karim Khan, announced that his office would deprioritise investigations into US forces, citing difficulties in obtaining evidence.
Khan was removed from his position earlier this year following allegations of sexual misconduct.
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Uzbekistan, Belgium discuss Afghanistan and regional cooperation
Uzbekistan and Belgium have discussed the situation in Afghanistan and regional efforts to develop a common approach towards the country.
Uzbekistan’s Special Representative of the President for Afghanistan, Ismatulla Irgashev, held talks with Belgium’s Ambassador to Uzbekistan, Matthias Kende, according to Uzbekistan’s Foreign Ministry.
During the meeting, the two sides exchanged views on the latest developments in Afghanistan and discussed issues related to bilateral cooperation on the Afghan track.
Kende praised Uzbekistan’s efforts to promote a consolidated regional position on Afghanistan.
The meeting was held in a constructive atmosphere, with both sides reaffirming their interest in strengthening practical dialogue between Tashkent and Brussels.
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