Trade Between Pakistan and Afghanistan Plummets Amid Ongoing Tensions

PESHAWAR: The Torkham border terminal, a multi-billion rupee investment, stands largely empty as trade relations between Pakistan and Afghanistan deteriorate due to ongoing security concerns. Bilateral trade has drastically decreased from $1.3 billion in FY24-25 to just over $350 million in FY25-26, highlighting the severe impact of the strained relationship.

Islamabad has made it clear that any engagement with Kabul hinges on decisive action against terrorist groups operating from Afghan territory. This stance has left many traders frustrated, as they call for a balance between security measures and the need for commerce to thrive.

The implications of this trade decline are significant, affecting not only the economies of both nations but also the livelihoods of countless individuals who depend on cross-border trade. The ongoing tensions have created a climate of uncertainty, stifling economic growth and exacerbating existing challenges for local businesses.

Looking ahead, stakeholders are urging both governments to engage in dialogue to address security concerns while facilitating trade. Upcoming discussions may focus on establishing a framework that allows for both security and economic interests to coexist.