Pakistan Exporters Face Heavy Losses as Afghanistan Trade Halt Drags On

Pakistani exporters are bleeding money a full year after trade with Afghanistan was suspended, with business groups estimating losses of more than $2.5 billion. Goods sit stranded at closed border crossings, sales have collapsed, and companies are being forced onto longer, far more expensive routes to reach Central Asian markets.
Trade between the two countries was halted in October 2025 following deadly clashes along the Pakistan-Afghanistan border. Islamabad has accused militants based in Afghanistan of carrying out attacks inside Pakistan — allegations Kabul denies. With key crossings shut, exporters say entire supply chains built over decades have unraveled.
Pakistan's pharmaceutical industry has been hit hardest: Afghanistan is its largest export market, and factories in Peshawar report production lines idling as orders dry up. Businesses that used Afghanistan as a gateway to Central Asia now face costly detours that erase their margins. The suspension shows no sign of ending, and traders warn that every passing month pushes Pakistani exporters further out of markets they may never win back.
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