Pakistan-Afghanistan border shutdown drives bilateral trade below $400 million

The prolonged closure of the Pakistan-Afghanistan border on October 12 2025 has left the multi-billion-rupee Torkham terminal virtually deserted and driven bilateral trade down from $1.3 billion to $358 million. Container traffic shrank from almost 89,000 units to just 11,592, according to the Trade Development Authority of Pakistan. Traders in Khyber Pakhtunkhwa say the loss of the corridor has raised logistics expenses and crippled sectors ranging from pharmaceuticals—once generating about $130 million in exports—to potato farming, where daily truck flows have been halved.

Transport operators report having to sell vehicles due to unviable routes. While some business voices, such as former SCCI president Junaid Altaf, call for a balanced approach of secure borders and regulated trade, others like former SCCI president Fuad Ishaq argue that security must come first, even at the cost of the $800 million-plus trade flow.