Khyber Pakhtunkhwa Warns: Pakistan–Afghanistan Border Closure Devastating Economy

DID Press: government of Khyber Pakhtunkhwa (K-P) has warned Pakistan’s federal government that the continued closure of commercial borders with Afghanistan has caused a sharp decline in revenues and the loss of job opportunities.

According to Pakistani media, Muzammil Aslam, Financial Advisor to the Khyber Pakhtunkhwa government, stated in a letter to Jam Kamal, the Federal Minister for Commerce, that cross-border trade has effectively come to a halt. This situation comes at a time when Pakistan is already facing declining exports, slowing economic growth, and rising unemployment.

Expressing concern over an “alarming” 80 percent drop in revenue from the Infrastructure Development Cess linked to border trade, Aslam cited a letter from the Khyber Pakhtunkhwa Revenue Authority (KPRA) showing a significant decline in tax collections.

The financial advisor called for a high-level joint meeting between the federal government and provincial administrations to assess the financial consequences of the border closure for Khyber Pakhtunkhwa and to address the problems faced by exporters and traders.

It is worth noting that major border crossings between Pakistan and Afghanistan have remained closed to regular trade and transit since October 10, 2025, following deadly border clashes and reports of Pakistani airstrikes.