PAJCCI urges dialogue to resume Pakistan-Afghanistan trade

Published June 18, 2026 Updated June 18, 2026 08:47am

PESHAWAR: Pakistan and Afghanistan have suffered significant economic losses due to the prolonged disruption of bilateral and transit trade, according to the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI).

In a statement issued here on Wednesday, Ziaul Haq Sarhadi, the PAJCCI senior vice-president and chairman of the Dry Port/Railway Standing Committee of the Sarhad Chamber of Commerce and Industry (SCCI), said Pakistani exporters had incurred losses amounting to around $225 million during the last eight months because of restrictions and blockades affecting transit trade.

He said Afghanistan remained Pakistan’s closest and one of its most important export destinations, where payments for goods were generally made in advance.

According to him, Pakistan’s annual exports to Afghanistan stand at approximately $1.5 billion, while exports to Central Asian Republics through Afghanistan amount to nearly $800 million annually.

Says both countries incurred heavy losses from prolonged trade disruption

Mr Sarhadi said disruptions in transit activities had adversely affected exports and also increased import costs for Pakistan. He noted that Pakistan imports cotton, pulses and other commodities from CARs through Afghanistan at comparatively lower costs, but the interruption in transit routes had significantly raised transportation expenses.

He added that Pakistan had also lost revenue generated through customs duties and taxes collected on cargo destined for Afghanistan and Central Asia.

Highlighting the importance of Afghan transit trade for Pakistan, Mr Sarhadi said Karachi ports handle between 40,000 and 45,000 containers annually for Afghan imports. He said each container generated an average economic value of around $4,000 through transportation, insurance guarantees, terminal handling, port charges, clearing and forwarding services and related facilities, bringing an estimated $160 million annually to Pakistan’s economy.

According to the PAJCCI official, Pakistan suffered losses of around $106 million during the last eight months due to the decline in transit activity.

He further stated that between October 2025 and April 2026, nearly 10,000 transit containers remained stranded in Pakistan, resulting in substantial demurrage and detention charges.

Mr Sarhadi said Afghan importers were paying an average penalty of $120 per container per day, causing additional costs estimated at $1.2 million daily, while cumulative losses over six months reached approximately $216 million.

He said Afghanistan’s annual exports to Pakistan total around $800 million, and Afghan exporters had reportedly suffered losses of about $533 million during the past eight months because of trade disruptions.

He added that Afghanistan’s annual exports to India through the Wagah border amount to around $300 million, and the closure had caused estimated losses of nearly $200 million to Afghan exporters.

Mr Sarhadi also said disruptions had reduced customs revenue collections for Afghanistan and negatively affected traders, farmers, importers and exporters on both sides of the border. Calling for immediate action, he urged authorities in Pakistan and Afghanistan to review existing policies and resume bilateral and transit trade through dialogue.

He said regional trade promotion remained essential for reducing poverty, strengthening economic stability, creating employment opportunities and supporting peace and security in the region.

Published in Dawn, June 18th, 2026

Opinion

Editorial

Words that wound
Updated 18 Jun, 2026

Words that wound

Hate speech rarely begins with physical attacks.
‘New urban province’
18 Jun, 2026

‘New urban province’

CONSIDERING the advance state of urban decay that affects Karachi, voices are often raised calling for the megacity,...
Punjab budget: mixed bag
18 Jun, 2026

Punjab budget: mixed bag

PUNJAB’S budget for FY27 is a mix of good and bad political choices, with a cash-strapped centre tightening the...
Spoiler alert
17 Jun, 2026

Spoiler alert

AFTER the temporary peace deal between the US and Iran is physically signed in Geneva on Friday, an arduous process...
Storm-tested cities
17 Jun, 2026

Storm-tested cities

THE deaths caused by the latest spell of monsoon rains in KP and Punjab illustrate how quickly severe weather can...
Chakwal tragedy
17 Jun, 2026

Chakwal tragedy

A NINE-year-old girl is dead because a Punjab Crime Control Department gunman mistook her family’s car for a...