Border Closures with Afghanistan Cost Pakistan Over $4 Million Daily, Traders Warn

Pakistani traders have warned that the closure of border crossings with Afghanistan is costing the country’s economy over $4 million daily, resulting in a drop in trade volume from $5 billion to between $700 and $800 million.

Pakistani Traders: Afghan Markets Handed over to Iran and India

Pakistani traders have announced that the continued closure of border crossings with Afghanistan is inflicting significant damage on the export economy of Pakistan and putting the country on the brink of losing vital regional markets.

The Economy on the Verge of Losing Markets

In discussions with Dawn News, Pakistani traders revealed that the border closures are causing them losses exceeding $4 million daily. This situation has not only breached contractual obligations with Afghan counterparts and Central Asian countries but also imposed additional costs of $150 to $200 for each stalled truck.

Zia-ul-Haq Serhadi, the Vice President of the Pakistan-Afghanistan Joint Chamber of Commerce and Industries, expressed concern, stating: “The trade potential between the two countries can reach $5 billion annually; however, due to border tensions and the closure of crossings, this volume has now fallen to between $700 and $800 million, posing a serious threat to local production and Pakistan’s economy.”

Former President of the Chamber of Industries and Commerce for Pakistan’s border regions, Zahidullah Shinwari, emphasized that Afghan and Central Asian markets are now saturated with products from Iran and India, making it exceedingly difficult for Pakistan to reclaim this market share. He added that many of Pakistan’s export goods have spoiled or become unsellable due to lengthy delays.

Warnings About Security Unrest

Pakistani traders are warning that the halt in trade with Afghanistan threatens the jobs of thousands of Pakistani workers and could lead to security unrest in Khyber Pakhtunkhwa, a region heavily reliant on inexpensive Afghan coal.

As losses mount, Pakistani traders have urged the Islamabad government to establish a supportive mechanism to compensate for these losses and relieve traders of the burden of halt costs for vehicles.

The border crossings have been closed for over 50 days, causing thousands of trucks carrying goods to come to a standstill. Multi-stage negotiations in Istanbul, Riyadh, and with mediating countries like Turkey and Qatar have so far yielded no results, with both sides continuing to blame each other for the ongoing crisis.