The commercial cost of Afghan intransigence

Goods trucks remain parked at the Torkham border’s terminal since its closure amid tensions between Pakistan and Afghanistan. —Photo by the writer • From $1. 3 billion in FY24-25, bilateral trade has fallen to a little over $350 million in FY25-26 • Traders call for balancing security and commerce needs PESHAWAR: The sprawling terminal at Torkham, built at the cost of several billion rupees, wears a deserted look as a protracted conflict continues to overshadow trade ties between Pakistan and Afghanistan. Islamabad remains adamant that there can be no engagement with Kabul without tangible action against terrorists operating from its soil, but the relationship remains in suspended animation due to the intransigence of the Taliban regime.

Industries in Pakistan, especially transport and pharmaceuticals, have been facing heavy losses since the border closed on Oct 12, 2025, following deadly clashes between the two countries. Besides Torkham, other border crossings, including Kharlachi, Ghulam Khan and Angoor Adda in Khyber Pakhtunkhwa and Chaman in Balochistan, have also remained closed for all kinds of trade. Figures released in July showed that Afghan Transit Trade, which stood at nearly 89,000 containers valued at $5 billion before the return of the Taliban, had plunged to just 11,592 containers worth $367 million in the outgoing fiscal year. According to data on bilateral trade, released by the Trade Development Authority of Pakistan (TDAP) earlier this year, Pak-Afghan trade witnessed a drop of 74pc in the last fiscal, from one year prior. Figures show that bilateral trade fell from $1. 3bn in 2024-25 to $358m in 2025-26. A 95pc decline was recorded in bilateral trade in 2026-27 compared with the previous year, according to the TDAP figures released in August.…