Pakistan's imposition of a trade ban with Afghanistan since mid-October 2025, initially framed as a security measure, has severely disrupted its own fragile economy while Kabul swiftly pivots to alternative partners.

Border crossings like Torkham and Chaman remain closed, stranding hundreds of trucks and halting billions in bilateral commerce. Defence Minister Khawaja Asif described the closure as a "blessing in disguise" to curb terrorism, yet mounting losses reveal it as a self-inflicted wound.​

Relations between Islamabad and the Taliban regime have plummeted following border clashes, Pakistani airstrikes on alleged Tehrik-i-Taliban Pakistan hideouts, and mutual accusations of harbouring militants.

DG ISPR Lieutenant General Ahmed Sharif Chaudhry's stark warning that "blood and business cannot go together" now haunts Pakistan as trade freezes exacerbate economic woes. Peace talks have collapsed amid deep mistrust, triggering repeated border shutdowns and escalating violence.​

Afghanistan, despite its dire poverty with over 64% of the population in multidimensional hardship, has adapted rapidly by redirecting trade through Iran, India, Central Asian republics, and even Russia. 

Taliban officials, including Industry Minister Alhaj Nooruddin Azizi, visited India to boost ties via Chabahar port and new air cargo routes from Delhi and Amritsar. Deputy PM Mullah Ghani Baradar urged traders to abandon Pakistan entirely, signalling a strategic shift away from overreliance on Islamabad.​

Pakistan's cement sector bears the brunt, with Afghan coal imports—once priced at PKR 30,000-38,000 per tonne—vanishing, forcing reliance on pricier supplies from South Africa, Indonesia, and Mozambique at PKR 42,000-45,000. Northern mills, consuming four million tonnes annually, face surging costs, while exports to Afghanistan, comprising 7% of total cement shipments, have halted entirely. Firms like Cherat, Fauji, and Maple Leaf Cement report 3-10% revenue hits from this dependency.​

Pharmaceutical exports, worth US$187 million yearly or 10% of Pakistan's total to Afghanistan, now languish in factories, with unofficial channels amplifying losses threefold. Many drugs lack domestic registration, blocking rerouting and piling up unsold stock amid a Taliban ban on Pakistani medicines. Northern exporters in Khyber Pakhtunkhwa, already reeling, face trillions in rupees lost over 45 days.​

Perishable fruits and vegetables, key exports like bananas, potatoes, and kinnow valued at US$150 million annually including transit to CIS nations, rot in fields or sell at depressed local prices. Imports of Afghan onions, pomegranates, and apricots have ceased, doubling domestic fruit costs and shifting supplies to costlier Iranian alternatives. Exporters discard consignments, crippling small traders and transporters.​

Broader ripple effects include plummeting transit duties, customs revenue, and foreign reserves at a time of crisis, with 700-750 containers stuck at borders and 9,000 delayed at ports. Khyber Pakhtunkhwa's Pathan traders, sharing ethnic ties with Afghans, erupt in protests via jirgas, demanding reopenings and slamming government hypocrisy on past India trade. Business leaders plead with figures like Maulana Fazlur Rehman for intervention.​

Even staples like ghee (6,000-8,000 tons monthly pre-ban) face disruptions, though flour exports were minor. Foreign Minister Ishaq Dar notes UN pressure to reconsider, planning talks with PM Shehbaz Sharif and Army Chief Asim Munir. Macro impacts remain modest at 0.5% export dip (US$150-160 million yearly), but sector-level devastation threatens jobs, inflation, and CPEC stability near volatile borders.​

Social media buzzes with Afghans mocking unsold Pakistani produce, while UN pleas underscore regional stakes. As Afghanistan courts Turkey and diversifies, Pakistan's "boomerang" policy risks isolating itself further amid security-trade trade-offs. Ordinary workers and firms pay dearly for a standoff born of hostility.​

Based On India Today Report