The Torkham crossing, a critical artery for trade between Afghanistan and Pakistan has remained shut to all movement and commercial activity for more than four months, since mid-October last year, deepening economic pain on both sides.

The closure followed clashes between Pakistani and Afghan forces on the night of October 11–12.

Although a ceasefire was later brokered with mediation involving Qatar and Turkey, trade routes have remained sealed amid lingering security concerns.

Alongside Torkham, other crossings—including Kharlachi, Ghulam Khan, Angoor Adda, and Chaman—were also closed, compounding the disruption.

Traders say the economic toll is mounting rapidly. Daily export losses through Torkham from Pakistan alone are estimated at about $2 million, translating to more than $240 million over roughly 120 days.

When stalled imports, lost customs revenue, and knock-on effects are included, the damage runs far higher.

Business groups report Pakistan’s monthly export losses nearing $177 million, with bilateral trade volumes down by more than half in recent periods.

Before the shutdown, Torkham handled around 10,000 travelers a day and 500–700 cargo and passenger vehicles. Its closure has crippled border markets and logistics.

Mujeeb Shinwari, president of Pakistan’s All Customs Clearance Agents Association, said more than 150 clearance offices at Torkham have shut, idling at least 1,000 workers. “This isn’t just about closed offices,” he said. “Entire households have lost their livelihoods.”

Zakir Shinwari, head of the Torkham Labour Union, estimates that over 4,000 daily-wage earners—drivers, loaders, porters, hotel owners, and service providers—have been pushed out of work. Faisal Malook, vice president of the Landi Kotal Traders Union, described a near-total collapse of local commerce, with markets empty and livelihoods cut off.

The shutdown has also distorted prices. Afghan exports of vegetables, cotton, and especially dry fruits—almonds, raisins, figs, pistachios, and pine nuts—have stopped, driving up prices in Pakistani markets.

Meanwhile, Pakistani exports such as potatoes, citrus, bananas, jaggery, and medicines have backed up, depressing prices and inflicting losses on producers.

Beyond the immediate area, factories reliant on Afghan raw materials or markets have slowed. Hopes of wider regional integration, including major power and transit initiatives linking Central and South Asia, have dimmed as prolonged closures and instability continue to undermine confidence in overland trade routes.

A proposed rail connection linking Iran to China through Afghanistan could reduce transport distances by up to 50 percent and enable direct freight train services to Europe.

The proposed Herat–Mazar-e-Sharif–Wakhan railway would connect China to Europe and West Asia via Afghanistan, Iran, and Turkey, strengthening regional trade corridors, IRNA reported. The project was recently discussed during talks between Afghan public works officials and the CEO of Iran Railways.

Iranian rail officials say the plan would use standard-gauge tracks, allowing trains to travel directly from China to Europe without cargo transfers, easing bottlenecks at borders with Kazakhstan and Turkmenistan. Technical studies are underway to assess investment needs.

Since the start of the current Iranian year, more than 63 China-bound freight trains have entered Iran, up from seven last year.

Officials estimate annual traffic on the China–Europe route could rise to 300 trains following regional agreements.

The project includes a 64-kilometer rail segment to Herat, an extension to Mazar-e-Sharif, and a connection through Afghanistan’s Wakhan region to China’s Xinjiang province. Despite challenging terrain, Iranian and Afghan companies have expressed interest in construction.

Iranian officials say the route would cut costs and transit time, boost trade with China, and strengthen Afghanistan’s integration into regional rail networks.

Contracts for the commencement of practical work on five major power generation projects with a total capacity of 845 megawatts were signed on Wednesday between Da Afghanistan Breshna Sherkat (DABS) and Azizi Energy.

The signing ceremony was held at the Government Media and Information Center in the presence of Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar.

Under the agreements, Azizi Energy will invest approximately $463 million in the projects, which include 100 megawatts of solar power in the Naghlu area of Kabul province, 100 megawatts of solar power in Barik Ab area of Parwan province, and 130 megawatts of solar power in Ghazni province.

In addition, the company will construct 165 megawatts of coal-fired power generation in Takhar province and 350 megawatts in Baghlan province.

Officials said the solar projects are expected to be completed within two years, while the coal-fired plants will be finalized within three years. The projects form part of a broader 10,000-megawatt energy investment plan aimed at strengthening domestic electricity production and reducing reliance on imports.

Following the signing ceremony, Deputy PM Baradar met with Azizi Group’s Chief Executive Officer Mirwais Azizi and his technical team at his office.

Baradar welcomed the launch of practical work on the five projects, describing them as significant steps toward job creation and economic growth in the country.

Azizi expressed appreciation for the cooperation provided by the Deputy Prime Minister’s office and relevant institutions, stating that the company had faced no major obstacles in advancing its plans. He said the Islamic Emirate has demonstrated a strong commitment to national development, which paved the way for the implementation of the projects.

Azizi further announced that an additional 15 to 20 power generation projects, with a combined capacity of up to 5,000 megawatts, are expected to be launched by the end of the current year.

He also noted that work on the TAPI project is progressing steadily on Afghan soil. Once gas reaches Herat province, Azizi Group plans to coordinate with the Ministry of Mines and Petroleum to develop major gas distribution networks and establish a 3,000-megawatt gas-fired power plant.

Azizi called for close cooperation with relevant authorities in the exploration, extraction, and utilization of natural gas and coal resources for electricity production.

Deputy PM Baradar and officials from the concerned institutions assured full cooperation and joint coordination in advancing the energy sector projects.

The agreements mark one of the latest  investments in Afghanistan’s power infrastructure, signaling renewed efforts to boost domestic energy production and stimulate economic development.