Border Closure Halts $110M Pakistani Investment Project in Afghanistan

DID Press: A planned $110 million investment by a Pakistani company in Afghanistan has been postponed after border closures disrupted trade flows, according to company statements and financial reports.

Pakistan Aluminium Beverage Cans Limited, a major exporter to Afghanistan, said its expansion plans — including the establishment of a new production facility in Afghanistan — have been delayed due to the closure of the Afghanistan border since October 2025.

The company reported that despite a 4% rise in net sales during fiscal year 2025, its profit declined by 14.5%. Export revenues also fell to around 14 billion rupees, while domestic sales showed growth.

According to financial advisors at AKD Securities, nearly 80% of the company’s exports are dependent on the Afghan market, making it highly vulnerable to disruptions in cross-border trade.

The company had previously approved a plan to build a can-manufacturing plant in Afghanistan with an estimated capacity of 1.3 billion units and a projected cost of $110 million. However, the timeline for the project now remains uncertain.

Analysts say the case highlights how border instability continues to directly affect foreign investment and industrial development plans linked to Afghanistan’s import-dependent market.