Pakistan-Afghanistan Border Closure Hits $200M in Losses

DID Press: The closure of Pakistan–Afghanistan border crossings following 11 October clashes caused approximately $200 million in economic losses over the first 24 days, and disrupted Pakistan’s trade with Central Asia.

More than $50 million in direct losses were incurred during the first 20 days (12–31 October). The shutdown of eight border crossings left thousands of traders stranded and millions-of-dollars worth of goods stuck at the border. Perishable items were destroyed and business owners are calling for talks to resolve the crisis, reported Nation newspaper, citing official sources.

During this period, Afghanistan — which typically imports about $150 million worth of goods from Pakistan every month and exports around $60 million — has seen severe trade decline. The halt in exchanges has disrupted not only bilateral trade but also Pakistan’s exports to Central Asia. Reports indicate millions of dollars of daily losses and hundreds of trucks loaded with food and agricultural products stuck in long queues.

The escalating security tensions between the two countries have deepened the trade crisis. However, following the announcement of a cease-fire extension, investor confidence improved and Pakistan’s Karachi stock index rose by 3.13% (4,898 points) on 31 October. Analysts interpret the jump as a sign of hope for stability and cooperation.

Meanwhile, on 15 October Pakistan halted Afghanistan transit cargo as well, to prevent further build-up of goods at border zones; at that time, 584 transit vehicles were either en route or stuck at crossings.

According to official statistics, bilateral trade between Pakistan and Afghanistan fell 6% to $475 million in the first quarter of fiscal year 2025-26, down from $502 million in the same period last year. Also, in September 2025, trade in goods between the two countries dropped 13%, from $204 million in September 2024 to $177 million.