Pakistani traders Express Concerns Over Border Closure with Afghanistan
Pakistani traders are voicing notable concerns over the ongoing closure of the Torkham border crossing with Afghanistan, fearing substantial economic repercussions. Several business leaders have emphasized Pakistan‘s greater reliance on trade with Afghanistan compared to the reverse.
Engineer Manzoor Elahi, former senior vice president of the Sarhad Chamber of Commerce adn Industry, stated that Pakistan stands to lose substantially if trade with Afghanistan is disrupted, citing the availability of cheaper medicines from Iran and India to the Afghan market. He noted that Afghanistan currently sources sugar from Uzbekistan and Russia, diminishing its need for Pakistani goods.Elahi warned that Pakistan risks losing not only the Afghan market but also access to Central Asian markets. He specifically highlighted the impact on fruit exports, estimating that 500-1,000 containers of kinnows, along with bananas and other fresh fruit, are typically transported daily to Afghanistan and Central Asia, representing a daily market value of $100-200 million.
Ziaul Haq Sarhadi, vice-president of the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), reported that approximately 8,000 trucks are currently stranded on both sides of the border due to the month-long closure. While acknowledging Pakistan’s security concerns, Sarhadi appealed for the release of these stranded trucks on humanitarian grounds.
Khan Jan Alokozai, head of the Afghan chapter of PAJCCI, affirmed that Afghan traders still prefer using Pakistan as the shortest trade route. However, he acknowledged the validity of concerns raised by Mullah Baradar regarding the border closure and stressed the need for resolution. Alokozai warned that prolonged border closures could force Afghanistan to seek alternative trade routes.He also pointed to the potential loss of the Central Asian market for Pakistan, noting that Pakistan exports 300,000-500,000 tonnes of potatoes to Central Asia annually via Afghanistan.
The border closure has already resulted in cumulative losses exceeding $45 million and Rs16.5 billion in trade between Pakistan and Afghanistan. Sources within trading and official circles indicate that Pakistan has already lost approximately 65% of its Afghan market share to competitors including Iran,Central Asian States,Turkiye,and India,a trend attributed to trade policies influenced by security concerns as August 2021.
These sources also report that the repeated border closures and perceived hostile environment have led major exporters to withdraw capital from the Pakistan-Afghanistan trade route, and the current situation is eroding confidence among remaining smaller traders. The disruption is impacting manufacturing in Khyber Pakhtunkhwa, and also the production of numerous daily-use items in Punjab and Sindh that were previously exported to Afghanistan.
Currently, Afghanistan imports from Pakistan a range of goods including cement, garments, shoes, vegetables, fresh fruits, fish, poultry, animal feed, and confectionery. The prolonged closure is notably affecting potato and banana exports, and the kinnow export season is also at risk.
