Suspension of Trade With Afghanistan Costs Pakistan Nearly $1 Billion in Exports

Key Facts

Pakistan’s Ministry of Commerce said the suspension of trade and transit with Afghanistan reduced the country’s exports by about $1 billion, according to the commerce secretary’s testimony before a parliamentary committee in a report published the same day. The figure puts the impact of the border closure at the center of debate over exporters’ ability to reach Central Asian markets, which had relied on the Afghan route. Agricultural exports, including oranges and potatoes, were affected, according to reports on the suspension’s consequences. In March, the government said the border with Afghanistan remained closed and that the route through China was “the most viable route to reach Central Asian markets” under the circumstances. It said at the time that it was considering transport and freight support for potatoes in an effort to ease the impact of the route change on exporters.

Subsequent developments showed Pakistan seeking to expand alternatives through Iran. A report published on October 26 said a government plan had facilitated exports of mandarins and potatoes to Central Asia through Iranian territory. The report said Uzbekistan had indicated demand for 300,000 tons of fresh potatoes and 20,000 tons of seed potatoes. The figures show the scale of the commercial opportunity Islamabad is trying to reach despite the disruption of the Afghan route. But the report outlined the requests and the plan; it did not say that the full quantities had become completed exports.

Commercial contacts also extended to Kazakhstan and Uzbekistan, according to the same report. It said potato supplies were offered to Kazakhstan, which requested 50,000 tons, as it described a surplus in Pakistan’s potato production. It also reported that Uzbekistan had indicated demand for 38,000 tons of Pakistani meat supplies over the next three years. These potential requests offer scope to expand exports beyond the Afghan channel, but remain dependent on exporters’ ability to organize transport and delivery through available routes. The report provided no evidence that shipments had been completed or specified a delivery schedule.

Afghanistan’s February 2026 data show another aspect of the closure’s impact on regional trade. The World Bank reported that Afghan exports totaled $124 million that month, down 8.2% from January and 3.3% from the same period a year earlier. The bank said the border closure disrupted textile and coal routes, and that both sectors struggled to reach alternative markets. Afghanistan’s trade deficit also widened 7% month on month to $1 billion in February, as exports declined and imports increased. Those figures covered Afghanistan’s position in February, before later reports on Pakistan’s efforts to open alternative export routes.

The World Bank said shipments rerouted through Iran and Central Asia incur higher transport costs, take longer and face operational inefficiencies. This means the existence of an alternative route does not automatically remove the burdens the closure of the Afghan corridor imposes on the movement of goods. In March, the Pakistani government had described the route through China as the most viable way to reach Central Asian markets, while considering transport and freight support for potato exporters. The comparison between the routes points to differing logistical options, without sources specifying the amount of any increase in the cost of Pakistani exports or its overall financial impact. The World Bank data concern Afghan trade in February and do not directly measure the cost of transporting Pakistani exports.

On the border decision, Pakistan’s Press Information Department said opening or closing it was a decision taken collectively by the government on the basis of broader national considerations, and that the Ministry of Commerce would advocate improved facilitation of cross-border trade. This places the trade issue within a government decision that extends beyond the ministry’s remit alone. Government officials also said in March that the border remained closed, while the government considered freight support options for potato exporters. The statements do not say when the border situation might change or whether new facilitation measures will be adopted. The steps announced so far focus on finding alternative routes and facilitating the movement of some exports to Central Asian markets.