Afghanistan Peace Campaign
Pakistan’s exports to Afghanistan plunged sharply in the first seven months of the current fiscal year, reflecting deepening trade disruptions and political tensions.
Official data from the State Bank of Pakistan show exports to Afghanistan fell by more than half compared with the same period last year. The value dropped from over five hundred fifty million dollars to nearly two hundred thirty million dollars during the July to January period.
Trade between the two countries has remained suspended since early October, a factor cited as a key reason behind the steep fall in Pakistan’s regional exports. The disruption has significantly limited formal cross-border commercial activity.
At the same time, Pakistan’s imports from Afghanistan also declined markedly during the same period. Import values fell to just over six million dollars, compared with more than fifteen million dollars a year earlier, highlighting a parallel contraction in bilateral trade flows.
The reduction in exchanges comes despite Afghanistan previously being considered one of Pakistan’s important regional export markets. Analysts say prolonged uncertainty has weakened commercial confidence among traders on both sides.
Economic experts attribute the downturn to the suspension of official trade channels and escalating political and security tensions that have directly affected cross-border transport and transit routes. Businesses have faced logistical hurdles and increased risks.
In recent months, relations between Islamabad and Kabul authorities have been strained by border incidents and mutual accusations over security concerns, further complicating efforts to restore stable economic engagement.
The decline in trade with Afghanistan has occurred within a broader slowdown in Pakistan’s regional export performance, even as imports from several neighboring countries have increased, widening the regional trade deficit.
Afghan officials have urged traders and pharmaceutical importers to seek alternative trade routes and diversify supply sources to prevent shortages in local markets. Authorities emphasized the need to reduce dependence on a single transit corridor and encouraged businesses to explore regional partnerships to maintain stable supplies of essential goods.