Dawn: Decline in Afghanistan Transit Threatens Peshawar’s Economy

DID Press: Pakistan’s Dawn newspaper has reported a sharp decline in Afghan transit trade through Pakistan, warning that the shift is putting increasing economic pressure on Peshawar and the surrounding region.

The newspaper, citing changes in Afghanistan’s trade routes, said economic relations between Kabul and Islamabad have entered a new phase in recent years.

According to the report, Afghan transit through Pakistan, which stood at nearly 89,000 containers before the Taliban returned to power, fell to just 11,592 containers in fiscal year 2026, with a total value of about $367 million.

Dawn reported that Afghanistan has reduced its reliance on Pakistani ports and trade routes by increasingly using routes through Iran and Central Asian countries.

The shift is particularly significant for Peshawar and Khyber Pakhtunkhwa, where parts of the local economy—including transportation, warehousing, customs clearance, wholesale trade and manufacturing—depend heavily on commerce with Afghanistan.

According to Dawn, declining Afghan trade is not only reducing Pakistan’s transit revenues but is also affecting a wider chain of economic activities linked to cross-border commerce.