Latest closure of key crossing causes $12M loss to Pakistan, Afghanistan trade

By Aamir Latif

KARACHI, Pakistan (AA) - Pakistani customs officials said Wednesday that the latest closure of a key border crossing between Pakistan and Afghanistan has caused a $12 million loss in bilateral trade.

The Torkham border, which connects Pakistan's northwestern Khyber Pakhtunkhwa province to Afghanistan's eastern Nangarhar province, has been closed since Saturday due to a dispute over the construction of a new checkpoint on the Afghan side.

The crossing remained closed for the fifth day in a row after a flag meeting between the two border forces officials held Tuesday remained fruitless.

"The closure has led to a $12 million loss to the trade between the two countries over the last five days," local broadcaster Geo News reported, citing a customs official who spoke on condition of anonymity as he was not allowed to speak to the media.

Torkham is one of the 18 crossings between the two neighbors, which have been locked in a border dispute for decades, which leads to frequent closure of land connections.

Some 10,000 people, mainly Afghans, use the crossing daily to seek medical treatment and earn a livelihood in Pakistan's border areas.

The two neighbors have had fluctuating trade relations due to ups and downs in their ties, which led to frequent closures of the border.

According to the State Bank of Pakistan, the country’s exports to Afghanistan have increased by 92% in the first six months of the current fiscal year, touching over $504 million.

Whereas, Pakistan’s imports from Afghanistan have also seen a significant rise of 125.85% during this period.

According to the Pakistan-Afghanistan Joint Chamber of Commerce, trade between the two countries amounted to $2.5 billion in 2010 but dropped to $1.6 billion before settling at slightly over $1.8 billion in 2022-23.

Trade between the neighbors is conducted under the Afghanistan-Pakistan Transit Trade Agreement, a bilateral deal signed in 2010.

Relations between Pakistan and Afghanistan have been sour since November 2023, after Islamabad launched a crackdown against illegal foreigners, mostly Afghan refugees, and announced it would send them back to their countries.

Islamabad also accuses Kabul of providing safe havens for the Tehreek-e-Taliban Pakistan (TTP), an outlawed umbrella organization that frequently launches attacks in Pakistan after crossing the border.

However, the interim Afghan government denies the charge, urging Islamabad to handle its domestic issues rather than blaming Kabul.