Business
Pakistan Airlines suspends Afghan operations citing IEA interference
Pakistan International Airlines (PIA) suspended flights to the Afghan capital, Kabul, on Thursday after what it called heavy handed interference by Islamic Emirate of Afghanistan (IEA) authorities.
The suspension took place after the IEA government ordered the airline, the only international company operating regularly out of Kabul, to cut ticket prices to levels seen before the fall of the Western-backed Afghan government in August.
“We are suspending our flight operations to Kabul from today because of the heavy handedness of the authorities,” a spokesman told Reuters.
Earlier, the IEA warned PIA and Afghan carrier Kam Air that their Afghan operations risked being blocked unless they agreed to cut ticket prices, which have spiralled to levels out of reach for most Afghans.
With most airlines no longer flying to Afghanistan, tickets for flights to the Pakistani capital, Islamabad, have been selling for as much as $2,500 on PIA, according to travel agents in Kabul, compared with $120-$150 before.
The Afghan transport ministry said in a statement prices on the route should “be adjusted to correspond with the conditions of a ticket before the victory of the Islamic Emirate” or the flights would be stopped.
It urged passengers and others to report any violations.
PIA, which runs chartered flights to Kabul rather than regular commercial services, said it had maintained the flights on “humanitarian grounds” and faced insurance premiums of as much as $400,000 per flight, Reuters reported.
“The insurance premiums on these flights are so high that it is simply impossible to operate scheduled flights to Kabul, as it is still considered a war zone by aircraft insurance companies and lessors,” the company said in a statement.
No comment was immediately available from Kam Air.
Business
Pakistan’s kinno exports falter as tensions with Afghanistan continue
Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.
Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.
Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.
Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.
Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.
Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.
Business
Pezeshkian pledges to facilitate Iran-Afghanistan trade
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.
Business
Afghanistan-Kazakhstan banking ties discussed in Kabul meeting
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