Pakistani Traders Warn of $4 Million Daily Losses Due to Afghan Border Closures

Pakistani traders have issued a warning that the closure of border crossings with Afghanistan is costing their country’s economy more than $4 million each day, dramatically reducing trade volume from $5 billion to between $700 and $800 million.

Pakistani Traders: Afghan Markets Being Handed Over to Iran and India

Pakistani traders have stated that the ongoing closure of border crossings with Afghanistan is inflicting substantial economic damage on the country’s export sector and positioning Pakistan on the brink of losing crucial 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 not only violates contractual obligations to Afghan partners and Central Asian countries, but also imposes additional costs of $150 to $200 for each truck that is halted.

Zia-ul-Haq Sarhadi, Vice President of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry, expressed concern and warned: The potential trade capacity between the two countries is estimated at $5 billion annually; however, due to border tensions and closures, this volume has now plummeted to between $700 and $800 million, posing a serious threat to local production and Pakistan’s economy.

Zahidullah Shinwari, former President of the Chamber of Industries and Commerce in Pakistan’s border regions, also emphasized that Afghan and Central Asian markets are currently flooded with products from Iran and India, making it extremely difficult for Pakistan to reclaim them. He noted that many exported goods from Pakistan have spoiled or become unsellable due to prolonged delays.

Warnings About Security Unrest

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

As losses mount, traders in Pakistan are urging the Islamabad government to establish a support mechanism to compensate for losses and relieve them of the costs associated with halted transport.

The border crossings have been shut down for over 50 days, halting thousands of trucks carrying goods. Multi-stage negotiations in Istanbul, Riyadh, and with intermediary countries like Turkey and Qatar have so far yielded no results, with both parties continuing to blame each other for the ongoing crisis.