The month-long shutdown of the Torkham border between Pakistan and Afghanistan has caused trade losses exceeding $4.5 billion, disrupting exports and imports and threatening local industries.
Since the Taliban took power in August 2021, repeated border closures and security-driven trade policies have caused Pakistan to lose over 65% of its Afghan market share to competitors like Iran, Turkey, Central Asian states, and India. The prolonged uncertainty continues to harm traders and small businesses engaged in cross-border trade.
The shutdown has impacted key exports including cement, garments, shoes, vegetables, fruits, poultry, animal feed, and confectionery, with potato, banana, and kinnow exports particularly at risk.
Qari Nazeem Gul, an exporter, said,
“Afghan traders now prefer doing business with Iran over Pakistan, as Iran offers more relaxed trade conditions.”
Mujeebullah Shinwari, head of Torkham customs clearing agents association, highlighted the decline in daily container traffic from 1,000–1,200 to just 250–300. He urged the government to adopt trader-friendly policies and suggested forming a jirga of tribal elders, politicians, and traders to negotiate the reopening of border points.
The closure not only reduces trade volume but also affects tax revenue and the financial stability of small traders, transporters, and exporters. Analysts warn that if prolonged, the border shutdown could permanently weaken Pakistan’s position in Afghan markets.