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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.

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Torkham

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.

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CASA-1000 power project on track to launch in 2027

Once operational, CASA-1000 is expected to strengthen regional energy security, support economic integration, and expand electricity trade across Central and South Asia.

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The long-delayed CASA-1000 energy project is expected to begin commercial operations in summer 2027, with construction in Afghanistan due for completion earlier that year, officials said.

Progress on the power project was reviewed during meetings in Dushanbe between April 18 and 20, involving Tajik authorities, Afghanistan’s state power utility Da Afghanistan Breshna Sherkat, the World Bank, and engineering firm KAMANI Engineering Corporation.

Tajik Energy Minister Daler Juma said the project is key to boosting regional cooperation and enabling the export of surplus hydropower from Central Asia to energy-deficient markets in South Asia.

Construction has already been completed in Kyrgyzstan, Tajikistan and Pakistan, while work continues in Afghanistan. According to officials, the Afghan segment is on track to be finalized by spring 2027, paving the way for full project operations later that summer.

Once operational, CASA-1000 is expected to strengthen regional energy security, support economic integration, and expand electricity trade across Central and South Asia.

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Afghanistan, Uzbekistan and Kyrgyzstan agree on framework to boost trade and transit

Officials said the talks focused on easing the movement of goods, particularly Afghan export products destined for Uzbekistan and Kyrgyzstan.

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Afghanistan, Uzbekistan and Kyrgyzstan have agreed to strengthen regional trade and transit cooperation following a high-level trilateral meeting held in Tashkent on the sidelines of the INNOPROM Central Asia expo.

Afghanistan’s Minister of Industry and Commerce Nuruddin Azizi met with Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry and Trade, and Sanzhar Iskenderovich Asylkulov, Deputy Minister of Economy and Commerce of Kyrgyzstan, to discuss measures aimed at facilitating transit procedures, increasing trade volumes and expanding Afghan exports to Central Asian markets.

Officials said the talks focused on easing the movement of goods, particularly Afghan export products destined for Uzbekistan and Kyrgyzstan.

At the conclusion of the meeting, the three sides agreed to establish a joint working group to oversee implementation of the proposed initiatives. They also reached agreement on Afghanistan’s membership in the exhibition platform.

The event brings together participants from across Central Asia, as well as Russia and Belarus, providing a platform for industrial cooperation and investment.

Officials say Afghanistan’s participation is expected to open new opportunities for local industries to showcase products and strengthen their presence in regional markets, while the agreement marks a step toward deeper economic integration and improved regional connectivity.

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Afghanistan showcases industry at key Central Asia expo

The exhibition brings together government officials, investors and manufacturers from across Central Asia and beyond, including participants from Russia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan.

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Afghanistan is making a notable showing at the INNOPROM Central Asia, one of the region’s largest industrial platforms, as Minister of Industry and Commerce Nuruddin Azizi travels to Uzbekistan to attend the event.

The exhibition brings together government officials, investors and manufacturers from across Central Asia and beyond, including participants from Russia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan.

It is aimed at promoting industrial development, showcasing advanced technologies and expanding regional investment cooperation.

According to Afghanistan’s Ministry of Industry and Commerce, more than 60 Afghan companies are taking part, representing sectors such as cotton, coal, pharmaceuticals and agricultural products.

Officials say the participation highlights efforts to strengthen trade ties and position Afghanistan as a growing economic partner in the region.

INNOPROM Central Asia is widely regarded as a key platform for fostering industrial collaboration and unlocking new investment opportunities across Central Asia.

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