Islamabad, Pakistan — Afghanistan is bearing a disproportionately heavier economic cost as Pakistan’s suspension of bilateral trade continues to disrupt commercial activity, analysts and business representatives say. The prolonged halt has significantly strained Afghanistan’s already fragile economy, affecting trade flows, supply chains and employment across key sectors.
The trade suspension, imposed by Pakistan amid regulatory and security concerns, has restricted the movement of goods across the border, leaving Afghan traders struggling to access one of their most important commercial routes. For landlocked Afghanistan, Pakistan has long served as a critical transit corridor for imports and exports, making the disruption particularly damaging.
Business groups in Afghanistan report sharp declines in exports, increased storage and transportation costs, and delays that have rendered perishable agricultural goods unmarketable. The uncertainty surrounding trade routes has also discouraged new business activity, compounding economic stress at a time when the country is already grappling with inflation and limited industrial output.
The impact has extended beyond agriculture to manufacturing and retail sectors, which rely heavily on raw materials and consumer goods imported through Pakistan. Factory slowdowns, supply shortages and rising costs have intensified concerns over job losses and declining household incomes.
Economists note that while Pakistan also faces economic consequences from reduced trade volumes, Afghanistan’s smaller and less resilient economy is far more vulnerable to prolonged disruptions. The imbalance means that Afghan businesses, particularly small and medium enterprises, are experiencing immediate and deeper financial distress.
Trade experts and regional analysts argue that restoring full commercial ties could bring mutual economic benefits, strengthening regional connectivity and supporting border communities dependent on cross-border commerce. They warn that continued uncertainty risks long-term damage to trade relations and regional economic integration.
Despite ongoing diplomatic engagements between the two countries, traders remain uncertain about when normal trade operations will resume. Business leaders on both sides have urged authorities to prioritise predictable and rules-based trade policies to ease economic pressure and restore confidence.
As the situation persists, observers say Afghanistan’s economy is likely to face mounting challenges unless cross-border trade flows are stabilised, highlighting the urgent need for coordinated economic and diplomatic efforts in the region.
This story has been reported by PakTribune. All rights reserved.