$240 Million Trade Crisis: Torkham Border Closure Paralyzes Pakistan-Afghan Commerce. -

The ongoing blockade of the Torkham border crossing and other key trade routes between Pakistan and Afghanistan has entered its fourth month, inflicting an estimated $240 million in total losses on traders from both nations as of mid-February 2026. The closure, which began in mid-October 2025 following military clashes, is currently costing businesses nearly $2 million daily.

Severe Impact on Agriculture and Industry

Perishable Goods Crisis: The fruit and vegetable sectors have been decimated, with annual exports of roughly $150 million to Afghanistan and Central Asia facing near-total collapse.
Market Crash: Overproduction and the export vacuum have caused a local price crash for potatoes and kinnows, with wholesale potato prices dropping by up to 60%.
Oversupply to Livestock: In some regions, the surplus is so high that potatoes are being used as livestock feed.
Industrial Shutdowns: Business leaders in Khyber Pakhtunkhwa (KP) warn that 90% of the provincial industrial sector depends on Afghan markets; continued disruption risks widespread factory closures and massive unemployment.

Economic and Labor Shortfalls

Export Losses: Pakistan is suffering a monthly export shortfall of approximately $177 million (Rs 50 billion).
Transit Disruptions: Over 12,000 cargo containers remain stranded, incurring heavy demurrage and detention charges of roughly $120 per container daily.
Labor Distress: Thousands of truck drivers, laborers, and daily wage workers in border areas have lost their primary source of income.
Trade Diversion: Afghanistan is increasingly diverting its trade to Iran and Central Asian states, posing a risk of permanent market loss for Pakistani exporters.

Current Border Status

While the government has allowed a one-time waiver for the re-export of transit cargo from Karachi ports to save Afghan importers from further losses, there is no official indication of a full border reopening. Security concerns remain the top priority for Pakistani officials, who maintain that “blood and business cannot go together” until credible assurances are provided by Kabul regarding cross-border militant activity.

Disclaimer: This post is for informational and journalistic purposes based on recent trade reports. The economic figures and worker statistics mentioned are estimates based on current available data and are subject to official verification. Please follow official trade and government channels for the latest updates on border status.