Economy

Afghanistan’s trade with Pakistan drops up to 45%: ACCI

Archive photo.

Afghanistan’s trade with Pakistan has fallen by as much as 45% after key border crossings between the two neighbours remained closed for nearly three months, the country’s Chamber of Commerce and Investment said on Thursday.

The chamber told Amu TV that the prolonged closures have sharply reduced Afghan exports, imports and transit trade, forcing traders to reroute goods through longer and more costly corridors via Iran and Central Asia.

Border crossings between Afghanistan and Pakistan have been shut for 79 days, effectively halting all formal commercial traffic between the two countries, according to the chamber.

Khan Jan Alokozay, a member of the chamber’s leadership board, said around 12,000 trucks carrying Afghan transit goods are currently stranded in Pakistan.

“There has been an estimated $400 million shortfall in trade between Afghanistan and Pakistan, much of it related to imports,” Alokozay said. “Transit trade, which is vital for Afghanistan, has also been suspended, and the fate of nearly 12,000 containers remains uncertain.”

Traders have warned that a prolonged disruption could inflict lasting economic damage on both sides, particularly at a time when Afghanistan’s economy is already under strain.

Consumers in Afghanistan have also raised concerns about rising prices of food, medicines and construction materials, which traders attribute to supply shortages and higher transport costs caused by the closures.

Pakistan’s central bank has previously said the country’s trade deficit widened by more than 39% compared with last year, citing a sharp decline in exports to Afghanistan as one of the main factors.