Business
Pakistani chamber calls on Islamabad to urgently reopen trade route from Afghanistan
SCCI chief fears bilateral trade could grind to a halt completely if Islamabad fails to resolve the issue urgently
Pakistan’s Sarhad Chamber of Commerce and Industry (SCCI) has called on Islamabad to take steps to reopen the key Afghanistan-Pakistan Highway for trade and transportation.
In a statement issued this week, SCCI President Fazal Moqeem said trade has been brought to a halt due to the closure of Afghanistan-Pakistan trade routes over the past few months.
He said the mutual trade volume and transit trade had dropped to an alarming level owing to the closure of the trade route. As a result, trade has shifted from Pakistan to Iran and Central Asian Republics.
The SCCI chief feared bilateral trade would grind to a halt completely if Islamabad fails to resolve the issue urgently.
“This will not only be detrimental to the national economy but also trigger unemployment owing to the closure of business and trade,” said Muqeem.
Meanwhile, Zahidullah Shinwari, a businessman, stated that the bilateral trade volume level had decreased substantially, and that traders on both sides have incurred huge financial losses.
Shinwari said local people and travellers also faced enormous hardships due to the blockaded highway. He called on Islamabad to urgently resolve the problem.
Shinwari called for a solution to be found to the issue with mutual consensus and negotiation.
The ongoing trade challenges, including route closures, rising customs tariffs, and what Afghanistan sees as Pakistan’s disregard for established trade agreements, have had a significant impact on Afghan exports.
For Afghanistan, Pakistan remains one of the most important trading partners. The two countries share long-standing economic ties, with Afghanistan relying heavily on Pakistan as a market for its agricultural products, including fresh fruits, vegetables, and dry fruits.
The reduction in Afghan exports comes at a critical time when the country’s economy is in dire need of stability and growth. The disruption of trade routes and the imposition of tariffs further complicate efforts to strengthen Afghanistan’s trade sector and promote economic recovery.
Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.
Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.
Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.
Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.
Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.
Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.
Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.
He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.
Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.
A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.
According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.
He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.
Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.
The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.
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