Border Closures with Afghanistan Cost Pakistan Over $4 Million Daily, Threatening Economy and Employment

Pakistani traders have warned that the closure of border crossings with Afghanistan causes more than 4 million dollars in daily losses to the economy of this country and has reduced the volume of trade from 5 billion dollars to 700 to 800 million dollars…

Pakistani Traders: Afghanistan’s Markets Are Being Handed Over to Iran and India

Pakistani traders have announced that the ongoing closure of border crossings with Afghanistan has inflicted massive damages on the export economy of this country and has put Pakistan on the verge of losing important regional markets.

The Economy on the Brink of Losing Markets

Pakistani traders told Dawn News that the border closures have caused them daily losses of over 4 million dollars. This situation has not only violated contractual obligations towards Afghan parties and Central Asian countries but has also imposed additional expenses of 150 to 200 dollars for each halted truck on the traders. Zia-ul-Haq Sarhadi, Vice President of the Pakistan-Afghanistan Joint Chamber of Commerce and Industries, expressed concern and warned: The potential trade capacity between the two countries is up to 5 billion dollars a year; however, due to border tensions and the closure of crossings, this volume has now decreased to 700 to 800 million dollars, which poses a serious threat to domestic production and the economy of Pakistan. Zahedullah Shinwari, the former president of the Pakistan Border Areas Chamber of Industry and Commerce, also emphasized that the markets of Afghanistan and Central Asia are now filled with Iranian and Indian products and recovering them will be very difficult for Pakistan. He added that many of Pakistan’s export goods have become spoiled or unsellable due to prolonged delays.

Warning About Security Unrest

Pakistani traders warn that the halt in trade with Afghanistan threatens the employment of thousands of Pakistani workers and could lead to security unrest in Khyber Pakhtunkhwa province, a region that relies on low-cost Afghan coal. With increasing losses, Pakistani traders have called on the Islamabad government to create a support mechanism to compensate for the losses and relieve the burden of halted vehicle expenses from the traders. The border crossings have been closed for more than 50 days, halting thousands of trucks carrying goods. Multi-stage negotiations in Istanbul, Riyadh, and intermediary countries like Turkey and Qatar have so far been unsuccessful, and both sides continue to blame each other for the continuation of this crisis.