PAJCCI urges dialogue to resume Pakistan-Afghanistan trade

Published
0

PESHAWAR: Pakistan and Afghanistan have suffered significant economic losses due to the prolonged disruption of bilateral and transit trade, according to the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI).

In a statement issued here on Wednesday, Ziaul Haq Sarhadi, the PAJCCI senior vice-president and chairman of the Dry Port/Railway Standing Committee of the Sarhad Chamber of Commerce and Industry (SCCI), said Pakistani exporters had incurred losses amounting to around $225 million during the last eight months because of restrictions and blockades affecting transit trade.

He said Afghanistan remained Pakistan’s closest and one of its most important export destinations, where payments for goods were generally made in advance.

According to him, Pakistan’s annual exports to Afghanistan stand at approximately $1.5 billion, while exports to Central Asian Republics through Afghanistan amount to nearly $800 million annually.

Says both countries incurred heavy losses from prolonged trade disruption

Mr Sarhadi said disruptions in transit activities had adversely affected exports and also increased import costs for Pakistan. He noted that Pakistan imports cotton, pulses and other commodities from CARs through Afghanistan at comparatively lower costs, but the interruption in transit routes had significantly raised transportation expenses.

He added that Pakistan had also lost revenue generated through customs duties and taxes collected on cargo destined for Afghanistan and Central Asia.

Highlighting the importance of Afghan transit trade for Pakistan, Mr Sarhadi said Karachi ports handle between 40,000 and 45,000 containers annually for Afghan imports. He said each container generated an average economic value of around $4,000 through transportation, insurance guarantees, terminal handling, port charges, clearing and forwarding services and related facilities, bringing an estimated $160 million annually to Pakistan’s economy.

According to the PAJCCI official, Pakistan suffered losses of around $106 million during the last eight months due to the decline in transit activity.

He further stated that between October 2025 and April 2026, nearly 10,000 transit containers remained stranded in Pakistan, resulting in substantial demurrage and detention charges.

Mr Sarhadi said Afghan importers were paying an average penalty of $120 per container per day, causing additional costs estimated at $1.2 million daily, while cumulative losses over six months reached approximately $216 million.

He said Afghanistan’s annual exports to Pakistan total around $800 million, and Afghan exporters had reportedly suffered losses of about $533 million during the past eight months because of trade disruptions.

He added that Afghanistan’s annual exports to India through the Wagah border amount to around $300 million, and the closure had caused estimated losses of nearly $200 million to Afghan exporters.

Mr Sarhadi also said disruptions had reduced customs revenue collections for Afghanistan and negatively affected traders, farmers, importers and exporters on both sides of the border. Calling for immediate action, he urged authorities in Pakistan and Afghanistan to review existing policies and resume bilateral and transit trade through dialogue.

He said regional trade promotion remained essential for reducing poverty, strengthening economic stability, creating employment opportunities and supporting peace and security in the region.

Published in Dawn, June 18th, 2026

Opinion

Editorial

Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...
Terror and politics
Updated 29 Sep, 2026

Terror and politics

There is an urgent need to tone down the rhetoric and tackle terrorism as a collective challenge for both the affected provinces and the federation.
Watching the glaciers
29 Sep, 2026

Watching the glaciers

THE latest signs from Pakistan’s mountains are worrying. Suparco says the number of unfrozen glacial lakes it...
Dangerous agenda
29 Sep, 2026

Dangerous agenda

AS the world remains fixated on the US-Iran conflict, elsewhere in the Middle East, Israel is consolidating its grip...