Pakistan-Afghan Trade Disrupted Amid Prolonged Border Shutdown

Pakistan’s trade relations with Afghanistan and several regional countries have come under strain as prolonged border closures leave over 10,000 Pak-Afghan and transit trade containers stuck at Karachi Port, triggering heavy financial losses for traders and disrupting cross-border commerce, the Sarhad Chamber of Commerce and Industry (SCCI) warned on Monday.

Thousands of Containers Stranded

SCCI President Junaid Altaf said between 10,000 and 12,000 containers linked to Pak-Afghan and transit trade are currently stranded at Karachi seaport, while thousands more are stuck at border points including Torkham, Spin Boldak, Kharlachi and Ghulam Khan. Many containers carry perishable goods, leading to spoilage and severe losses for traders on both sides.

“The prolonged border closure has caused massive financial damage, especially to traders dealing in food and perishable items,” Altaf stated.

The chamber warned that daily losses run into millions of dollars, with billions blocked in bank guarantees and container security deposits. Clearing agents and bonded carriers are facing liquidity crises, while foreign shipping lines continue to impose demurrage and detention charges.

SCCI officials said uncertainty over Afghan Transit Trade clearance has not only unsettled traders but also adversely affected Pakistan’s relations with countries from where the cargo originated, adding diplomatic pressure to an already fragile trade environment.

Trade with Central Asia Declines

Highlighting broader implications, the SCCI chief shared official data showing Pakistan’s trade with five Central Asian countries declined sharply during July-October FY26, with imports plunging 63.59% to $15.8 million from $43.39 million. Despite the region’s estimated annual trade potential of $400-500 million via Afghanistan, current volumes remain far below capacity.

Altaf added that exports worth $50-60 million, mainly medicines, cement and kinnow, have been wiped out this peak season, while daily bilateral trade losses have reached around $5 million.

Call for Urgent Government Action

The SCCI urged the Ministry of Commerce and relevant authorities to immediately resolve border issues, allow a one-time clearance of stranded transit cargo, and waive demurrage charges to prevent further losses. It also called for similar facilitation measures for Afghan transit cargo as previously provided to Central Asian Republics’ consignments.