A YEAR after Islamabad severed commercial ties with Kabul over security concerns, the border trade disruption is taking a growing toll on KP, where livelihoods, businesses, farm markets, and a large number of workers depend on cross-border commerce. Bilateral trade has fallen by more than 72pc, from $1.3bn in FY25 to $358m in FY26 — which means fewer customers for local shops, lower earnings for farmers, idle trucks, and lost jobs. KP was already struggling to attract investment and create work amid rising terrorism; the loss of an established market makes recovery harder. The damage is not confined to the province. Farmers and factories in Punjab and Sindh, too, have been hit, and Pakistan’s exports to Central Asia have been badly disrupted.

Afghanistan has long been KP’s natural outlet because of its proximity and the long-standing commercial and tribal networks. Traders built their businesses around moving food, cement, pharmaceuticals, and other goods across the border. Medical tourism, hotels, and other services catering to Afghan visitors are suffering as well. When crossings shut, traders cannot send their goods to distant markets without facing higher costs, finding new buyers, and adapting to unfamiliar commercial conditions. In fact, most services cannot be shifted at all. Rerouting shipments is not an easy fix. Pakistan’s shortest land routes to Central Asia run through Afghanistan. Alternatives mean longer distances, higher freight costs, and thinner margins. Small enterprises with little financial cushion are the most exposed to prolonged border trade closures. KP needs expanding markets and productive investment to employ a growing workforce; it cannot afford to lose existing ones before alternatives are in place. Islamabad has valid security concerns — the Taliban must prevent Afghan territory from being used for attacks on Pakistan. But border closures also hurt citizens on both sides, who have nothing to do with Kabul’s policies. Islamabad must find the right balance between its security priorities and the economic strain on KP’s residents. Sustained efforts to obtain genuine security assurances from Kabul and carefully monitored arrangements for legitimate trade may offer a way to protect both. It should also assess the losses of traders, transporters, and farmers, and help businesses find new markets. The government must protect its people from terrorism without restricting their livelihoods.

Published in Dawn, October 20th, 2026