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Pakistan's border mismanagement bleeds economy as Balochistan-Afghan trade remains frozen

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Balochistan | January 3, 2026 12:19:12 PM IST
Closures of border crossings between Balochistan and Afghanistan have triggered a deepening economic crisis, with Punjab alone reportedly losing more than Rs80 billion every month due to stalled trade. Business leaders warn that Pakistan's failure to ensure stable cross-border commerce is compounding inflationary pressures and eroding already fragile investor confidence, as reported by The Balochistan Post.

According to The Balochistan Post, the Lahore Chamber of Commerce and Industry, the shutdown of key trade routes following border tensions last October has effectively paralysed bilateral trade. Industries dependent on the Afghan market, particularly those in the cement, agricultural chemicals, and food exports sectors, have suffered significant losses.

Chamber representatives said the closures have exposed the state's inability to separate economic cooperation from political and security disputes, a pattern that has repeatedly hurt Pakistan's economy.

Thousands of traders on both sides of the border remain stranded. Estimates suggest nearly 3,000 traders, including a large number from Pakistan, are stuck due to the prolonged closures. Truckloads of fresh fruits, dry fruits and other perishable goods imported from Afghanistan are reportedly rotting at border points, inflicting massive financial damage.

At the same time, Pakistan has been unable to export vegetables, medicines and construction materials, further weakening its export sector

Trade experts say the disruption has rippled across the transport and logistics industries, leaving drivers, loaders and small operators struggling to survive.

They argue that the Afghan border is not only vital for bilateral trade but also serves as Pakistan's gateway to Central Asian markets. With exports already heavily reliant on neighbouring countries, the continued halt is intensifying economic stress, reducing incomes and fuelling public frustration, as highlighted by The Balochistan Post.

Criticism has also been directed at the federal government and revenue authorities for failing to offer relief to affected traders. Business groups complain that consignments, including agricultural produce meant for Afghanistan, have perished without compensation, while the transport sector slides toward a financial breakdown.

The lack of emergency measures, they say, reflects policy paralysis rather than unavoidable circumstances. Calling for immediate diplomatic engagement, trade leaders have urged Pakistan and Afghanistan to reopen border crossings without further delay, as reported by The Balochistan Post. (ANI)

 
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