Afghanistan-Pakistan Transit Trade Plunges to Record Low

DID Press: Transit trade between Afghanistan and Pakistan has fallen to its lowest level in years, with cargo volumes dropping sharply as Afghanistan increasingly shifts trade toward Iran and Central Asia, according to Pakistani media reports.

Figures show that transit trade declined from nearly 89,000 containers worth $5 billion before the Taliban’s return to power to 11,592 containers valued at $367 million in the last fiscal year.

Pakistani media attributed the downturn primarily to Afghanistan’s growing use of Iranian trade routes and tighter border restrictions imposed by Pakistan.

The decline had already begun before Pakistan closed its border with Afghanistan in October 2025 over security concerns. Transit volumes fell from 102,886 containers worth $6.7 billion in fiscal year 2023 to 54,114 containers in 2024, then to 42,959 containers worth $1.36 billion in 2025, before reaching the latest low.

Analysts say the Taliban administration had already been pursuing a strategy to reduce dependence on Pakistani ports by expanding trade through Iran and Central Asian countries.

Reverse transit, which enabled Afghan exports—particularly to India—via the Wagah border crossing and Karachi Port, also collapsed, dropping from $454 million in fiscal year 2025 to just $7 million in fiscal year 2026, effectively bringing the trade corridor to a halt.

According to the World Bank, Afghanistan’s imports rose 15% to $13.2 billion in fiscal year 2025. Iran accounted for 31.3% of total imports, while 48.6% of Afghanistan’s imports entered the country through direct and transit routes via Iran.

The World Bank also warned that prolonged border closures with Pakistan, higher transportation costs, and shifting trade routes have reduced exports, cut customs revenues, increased prices of essential goods in Afghanistan, and affected thousands of jobs linked to cross-border trade.