Pakistan, Afghanistan open Chaman border crossing after nearly a month

Pakistan and Taliban flags are seen on their respective sides near Friendship gate at a border crossing point in Chaman, Pakistan on August 27, 2021. (AP/File)
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Updated 02 November 2021
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Pakistan, Afghanistan open Chaman border crossing after nearly a month

  • The Friendship Gate at Chaman is the second major border crossing between the two neighboring countries
  • Business community says the decision to close the border cost them about $857,000 in daily trade

ISLAMABAD: Pakistan and Afghanistan have opened the Friendship Gate at Chaman-Spin Boldak border crossing after about a month, Pakistan’s envoy to Kabul said on Tuesday.
The Chaman border crossing, which links Pakistan’s Balochistan province with Afghanistan’s Kandahar region, remained for nearly three weeks, though the authorities opened it for one day during this period to allow the movement of people on humanitarian grounds.
Local business community told Arab News last week the closure of Friendship Gate, one of Pakistan’s major border crossing points with Afghanistan, had cost them about Rs150 million ($857,942) per day due to the suspension of trade in the area.
The crossing is also a vital revenue source for Afghanistan’s cash-strapped government.
Pakistan’s ambassador to Afghanistan Mansoor Ahmed Khan announced in a Twitter post on Tuesday that Chaman-Boldak gate was now open and pedestrians and goods carrying vehicles had started crossing the border.
“We welcome Afghan fruit trucks moving to Pakistan,” he wrote. “Urge all concerned on both sides to devote their energies to ensure smooth movement of people & trucks.”

 

 

A day earlier, on Monday night, the ambassador said on the social media platform that “the two sides will ensure facilitative movement of people & trade/transit vehicles.”

 

 

The Pakistan-Afghanistan Joint Chamber of Commerce and Industry applauded the decision of the two countries in a statement after they opened the border to once again facilitate bilateral trade.
“The hiatus has caused huge financial losses and mental distress to border based businesses and farmers who witnessed ruining of their produce especially in this export season,” the trade body said, as it maintained “both sides must keep communication channels open to ensure that border remains open and a framework is developed to address routine as well as conditions arising out of force majeure closure of borders immediately.”
As Afghanistan sinks deeper into economic crisis, neighboring countries have become increasingly worried about a mass movement of refugees.
Pakistan’s foreign secretary Sohail Mahmood briefed Australia’s special representative on Afghanistan on urgent humanitarian and economic challenges facing Afghan people while stressing the need for immediate steps to alleviate their sufferings.
“The release of Afghanistan’s financial assets was another step that would be helpful in this regard,” the foreign office quoted him as saying in a statement.
The foreign secretary highlighted the measures taken by Pakistan to provide humanitarian assistance to the war-battered country, promote bilateral trade and economic cooperation, “regulate cross-border movement of people, foster further coordination among Afghanistan’s neighbors, and advance the regional connectivity projects.”


Pakistan says inflation to remain within 5-6 percent range in January

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Pakistan says inflation to remain within 5-6 percent range in January

  •  Current account projected to remain in deficit, says Finance Division in monthly economic outlook
  •  Pakistan suffered a financial crisis in 2023, marked by inflation of 38 percent, depleted forex reserves

KARACHI: Inflation is expected to remain within the 5-6 percent range in January, Pakistan’s Finance Division said in its monthly economic outlook report on Tuesday, saying that the country’s economy is well positioned to sustain growth momentum in FY2026. 

Consumer Price Index (CPI) inflation was recorded at 5.6 percent year-on-year (YoY) basis in December 2025 as compared to 6.1 percent in November 2025 and 4.1 percent in December 2024. 

“Inflation is expected to remain within the range of 5.0-6.0 percent in January,” the Finance Division said. 

“On the external front, the current account is projected to remain in a deficit; however, robust remittance inflows and steady performance in IT and services exports are likely to cushion external pressures.”

The report said that the “positive trajectory” of the economy reflects the impact of the government’s prudent policies, ongoing structural reforms and easing of monetary conditions due to subsiding inflationary pressures.

Earlier, Pakistan’s finance ministry adviser Khurram Schehzad said S&P Global Market Intelligence’s latest macroeconomic forecast for Pakistan broadly aligns with projections issued by the State Bank of Pakistan, signaling easing inflation, manageable external balances and a gradual recovery in economic growth.

The assessment came amid stabilizing macroeconomic indicators after Pakistan went through a prolonged financial crisis marked by record inflation of 38 percent, depleted foreign exchange reserves and repeated balance-of-payments pressures, culminating in emergency support from the International Monetary Fund.

Tighter monetary policy, fiscal consolidation and external financing have since helped stabilize prices and ease pressure on the external account, prompting more measured assessments from international credit rating agencies.

“S&P’s projections broadly align with SBP’s outlook, with slight differences on growth and the current account but a shared assessment of easing inflation and gradual economic improvement,” Schehzad said in a statement.

According to S&P, inflation is expected to average 5.1 percent in 2026 and edge up slightly to 5.6 percent in 2027, staying within the SBP’s projected range of 5 percent to 7 percent over the next two years.

On the external front, S&P forecast a current account deficit of 0.5 percent of gross domestic product in 2026, broadly in line with the central bank’s expectation that the deficit will remain between 0 percent and 1 percent of GDP in the fiscal year.

Economic growth is projected to strengthen gradually, with S&P forecasting real GDP growth of 3.5 percent in fiscal year 2026, rising to 4.4 percent the following year. The SBP has projected growth of 3.75 percent to 4.75 percent for FY26.

Both S&P and SBP projections echo the government’s assessment that macroeconomic conditions are stabilizing, as Pakistan seeks to attract foreign investment and push toward export-led growth.