Business
Pakistan-Afghanistan trade shrinks to $1 billion amid border disruptions and policy uncertainty
Trade experts and business leaders are urging both Islamabad and Kabul to adopt consistent and transparent trade policies
The annual trade volume between Pakistan and Afghanistan has dropped sharply from $2.5 billion to just $1 billion, as ongoing border closures and inconsistent trade policies continue to strain economic ties between the two neighbors.
Zia-ul-Haq Sarhadi, Vice President of the Pakistan-Afghanistan Joint Chamber of Commerce, described the decline as “deeply concerning,” warning that Pakistan’s broader regional trade ambitions, including access to Central Asian markets, depend on a stable trading relationship with Afghanistan.
For years, Pakistan has exported essential goods to Afghanistan, including cement, steel bars, pharmaceuticals, vegetables, flour, and sugar, while importing fresh produce and other agricultural products in return.
However, persistent challenges and growing diplomatic friction between the two countries have disrupted this exchange.
A key flashpoint occurred in February when heightened tensions prompted a closure of the Pakistan-Afghanistan border.
The shutdown halted the movement of goods and people, causing significant losses in tax revenues for both nations and stalling cross-border commerce.
“The impact wasn’t just on trade numbers,” Sarhadi noted. “From Karachi’s ports to the Torkham crossing, thousands of laborers and transport workers were left jobless for days. The ripple effects hurt the most vulnerable segments of society.”
Trade experts and business leaders are urging both Islamabad and Kabul to adopt consistent and transparent trade policies, emphasizing that long-term economic cooperation is vital not only for mutual economic benefit but also for fostering regional peace and stability.
They warn that without a sustained diplomatic and economic dialogue, both countries risk further isolation and economic stagnation, especially at a time when the region faces broader geopolitical and security challenges.
Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.
He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.
Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.
A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.
According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.
He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.
Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.
The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.
Business
Afghanistan, Kazakhstan envoys discuss expanding trade and regional connectivity
Ambassador Shakeeb thanked Kazakhstan for its continued support and constructive engagement with Afghanistan, particularly in efforts aimed at peace and economic development.
Afghanistan’s Ambassador to Pakistan, Sardar Ahmad Shakeeb, has met with Kazakhstan’s Ambassador to Pakistan, Yerzhan Kistafin, to explore ways to strengthen bilateral relations and advance regional cooperation.
The two envoys exchanged views on Afghanistan–Kazakhstan ties, regional connectivity, and major infrastructure initiatives, as well as the opportunities and challenges facing regional trade. Discussions also touched on Kazakhstan’s role in promoting regional stability and other matters of mutual interest.
Ambassador Shakeeb thanked Kazakhstan for its continued support and constructive engagement with Afghanistan, particularly in efforts aimed at peace and economic development.
He expressed hope that the proposed $3 billion joint trade agreement, once finalized, would bring tangible benefits to both countries and contribute to broader regional economic integration.
Ambassador Kistafin reaffirmed Kazakhstan’s support for stability and economic growth in Afghanistan, highlighting his country’s involvement in key regional connectivity and trade projects.
He said the current security and stability situation in Afghanistan has increased Kazakhstan’s confidence in expanding regional trade and transit, and praised the efforts of the Islamic Emirate in this regard.
He also stressed the need for coordinated regional efforts to ensure lasting stability, sustainable economic development, and the smooth movement of goods and transit across the region.
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