Pakistan-Afghanistan border closures cause $2.5 billion in trade losses

Prolonged border closures between Pakistan and Afghanistan have resulted in an estimated $2.5 billion in trade losses. The shutdown at key crossings, such as the Torkham border, has disrupted exports and imports, with losses estimated at $1.644 billion in exports and $817 million in imports.

Beyond the direct economic impact, the closure has caused significant social and security challenges. In Pakistan’s Khyber Pakhtunkhwa province, thousands of workers in small industries face unemployment, and businesses including transport operators, hotels, and markets are suffering.

Bilateral relations remain strained by security concerns, specifically regarding the movement of militant networks like the Tehrik-i-Taliban Pakistan (TTP), which Islamabad claims uses Afghan territory to launch attacks. These security tensions, combined with border skirmishes and artillery exchanges, continue to destabilize the strategic frontier linking South and Central Asia.