With Torkham closed, trade losses mount

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.