Business
With Torkham closed, trade losses mount
Business groups report Pakistan’s monthly export losses nearing $177 million, with bilateral trade volumes down by more than half in recent periods.
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.
Business
UNHCR launches largest carpet-weaving centre in western Afghanistan
Over the past year, some 2 million Afghans have returned from Iran, highlighting the urgent need for economic opportunities, especially for women, said UNHCR.
The UNHCR, in collaboration with the Islamic Development Bank, on Wednesday inaugurated the largest carpet-weaving center in western Afghanistan’s Herat province.
The initiative, attended by UN Deputy Special Representative Indrika Ratwatte and local community leaders, will support 400 returnees, with more than three-quarters of them women, providing livelihoods and skills training.
The centre aims to empower returnees and host communities, helping them rebuild sustainable livelihoods, a priority need identified by Afghans returning from Iran.
Over the past year, some 2 million Afghans have returned from Iran, highlighting the urgent need for economic opportunities, especially for women, said UNHCR.
Uzbekistan’s President Shavkat Mirziyoyev has officially ratified the Preferential Trade Agreement (PTA) between Uzbekistan and Afghanistan.
The agreement was first signed on 10 June 2025 during the Tashkent International Investment Forum by Uzbekistan’s Minister of Investment and Foreign Trade Laziz Kudratov and Afghanistan’s Minister Nuriddin Azizi, Uzbekistan Daily reported.
The PTA eliminates tariffs on 14 categories of goods, simplifies the issuance of phytosanitary permits for Afghan agricultural products, and introduces additional support measures for Uzbek exporters.
In February 2026, Uzbekistan’s Deputy Prime Minister Jamshid Khodjaev held online talks with Azizi to accelerate the agreement’s entry into force, advance investment projects, and promote industrial cooperation. A new joint business forum is planned to take place in Kabul after the conclusion of Ramadan.
The agreement is expected to strengthen bilateral trade, boost economic ties, and create new opportunities for Afghan businesses and exporters.
Afghanistan is preparing to increase exports of fruits and vegetables to Russia following a temporary ban by Iran on food exports, Russian media reported citing Rustam Khabibullin, head of the Russian Business Center in Afghanistan.
On March 3, the Iranian government announced an indefinite suspension of all food and agricultural exports to prioritize domestic food security amid ongoing regional conflict. Goods that were previously destined for Russian retailers are now being redirected to Iranian state reserves.
In response, Afghanistan has already dispatched its first shipment of 100 tons of apples to Russia. Shipments of peppers, dried fruits, nuts, celery, zucchini, eggplant, citrus, berries, herbs, and melons are being prepared for delivery in the coming weeks. Khabibullin noted that demand from Russia is growing, and Afghan exporters aim to meet the rising requests to prevent shortages and stabilize prices for consumers.
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