Traders, experts urge dialogue as Pakistan, Afghanistan border clashes suspend trade

Trucks remain stalled at the Pakistan-Afghanistan border town of Torkham on October 13, 2025, amid cross-border clashes between the two countries. (AFP)
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Updated 13 October 2025
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Traders, experts urge dialogue as Pakistan, Afghanistan border clashes suspend trade

  • Authorities say no new exchange of fire has been reported since Sunday along the 2,611-kilometer-long border
  • Traders say perishable goods are rotting on both sides of border after Pakistan's closure of border terminals

ISLAMABAD: The recent border clashes between Afghanistan and Pakistan have brought bilateral trade to a standstill as thousands of traders remain stranded and goods worth millions stuck at key crossings for a second day on Monday, traders said, with stakeholders and experts calling for a dialogue to defuse tensions between the neighbors.

The fighting began Saturday night, when Afghan forces struck multiple Pakistani military posts. Afghanistan officials claimed to have killed 58 Pakistani soldiers in response to what they said were repeated violations of Afghan territory and airspace.

Pakistan’s military gave lower figures, saying it lost 23 soldiers and killed more than 200 “Taliban and affiliated terrorists” during retaliatory fire along the border. Foreign governments, including Saudi Arabia, China and Russia, expressed concern and urged restraint as a ceasefire appeared to be holding.

Pakistan has closed all eight border crossing points with Afghanistan after the clashes along the 2,611-kilometer border, leading to the formation of long queues of vehicles carrying hundreds of tons of perishable goods.

“The border closure is not only hurting Pakistan-Afghanistan trade but also affecting exports to Central Asia, causing daily losses of millions of dollars,” Junaid Ismail Makda, president of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), told Arab News.

Pakistan imports fruit, vegetables and dry fruit from Afghanistan and exports textiles, rice and plastics in return, according to the Pakistani commerce ministry. The annual bilateral trade is valued at around $2 billion, while Afghanistan also depends on Pakistan’s transit corridor for global imports.

Although, Pakistan and Afghanistan have eight border crossing points but most of the goods pass through the Torkham border crossing in Pakistan's northwestern Khyber Pakhtunkhwa province and Chaman in the southwestern Balochistan province.

Both provinces have witnessed a surge in militant attacks in recent years. Islamabad's has frequently accused Afghanistan of allowing the use of its soil by militant groups, particularly the Tehreek-e-Taliban Pakistan (TTP), and India of backing them for attacks inside Pakistan. Kabul and New Delhi deny those allegations.

The weekend clashes between Pakistan and Afghanistan also followed the killing of more than a dozen Pakistani soldiers in KP.

Abdul Waris, a goods clearing agent in Chaman, said hundreds of containers with perishable produce were stuck on the Afghan side of the border.

“Businessmen in Lahore, Karachi and Peshawar have already paid Afghan farmers and now their goods are rotting,” he told Arab News.

Traders say the closure of border crossings has affected livelihoods on both sides.

“Trade between the two countries benefits hundreds of thousands of people and now their income has stopped,” said Shahid Shinwari, a former senior vice president of the Sarhad Chamber of Commerce in KP.

He said Afghanistan cannot afford a prolonged closure of border as it heavily relies on Chaman and Torkham crossings, hoping that the two countries "will resolve their issues through talks for the better future of [their] peoples."

Arab News contacted Pakistan’s military to know when the border crossings are expected to reopen but did not receive a response.

Experts say the Taliban's attack on Pakistani posts after last week's alleged airstrikes in Afghanistan shows they want to project their "independence from Pakistan."

“They are trying to dispel the perception of being under Islamabad’s influence,” he added.

The Pakistan-Afghanistan skirmishes come at a time when Afghan foreign minister Amir Khan Muttaqi is visiting India, where he said on Saturday that Pakistan should not blame Afghanistan for its internal problems.

His comment was a reference to Islamabad's complaints about rising attacks by TTP militants, who Pakistani officials say have sanctuaries in Afghanistan.

Asked about Muttaqi's visit to India, Asif Durrani, Pakistan’s former special envoy to Kabul, said it is the right of Afghanistan to establish relations with India.

Durrani said Pakistan had to respond to the Taliban attacks on its outposts but maintained that talks are the only way to end the crisis.

“Clashes are not good for the region. The only solution is talks,” he added.


Pakistan reports current account surplus in Jan. owing to improved trade, remittances

Updated 17 February 2026
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Pakistan reports current account surplus in Jan. owing to improved trade, remittances

  • Pakistan’s exports crossed the $3 billion mark in Jan. as the country received $3.5 billion in remittances
  • Last month, IMF urged Pakistan to accelerate pace of structural reforms to strengthen economic growth

ISLAMABAD: Pakistan recorded a current account surplus of more than $120 million in January, the country’s finance adviser said on Tuesday, attributing it to improved trade balance and remittance inflows.

Pakistan’s exports rebounded in January 2026 after five months of weak performance, rising 3.73 percent year on year and surging 34.96 percent month on month, according to data released by the country’s statistics bureau.

Exports crossed the $3 billion mark for the first time in January to reach $3.061 billion, compared to $2.27 billion in Dec. 2025. The country received $3.5 billion in foreign remittances in Jan. 2026.

Khurram Schehzad, an adviser to the finance minister, said Pakistan reported a current account surplus of $121 million in Jan., compared to a current account deficit of $393 million in the same month last year.

“Improved trade balance in January 2026, strong remittance inflows, and sustained momentum in services exports (IT/Tech) continue to reinforce the country’s external account position,” he said on X.

Pakistan has undergone a difficult period of stabilization, marked by inflation, currency depreciation and financing gaps, and international rating agencies have acknowledged improvements after Islamabad began implementing reforms such as privatizing loss-making, state-owned enterprises (SOEs) and ending subsidies as part of a $7 billion International Monetary Fund (IMF) loan program.

Late last month, the IMF urged Pakistan to accelerate the pace of these structural reforms to strengthen economic growth.

Responding to questions from Arab News at a virtual media roundtable on emerging markets’ resilience, IMF’s director of the Middle East and Central Asia Jihad Azour said Islamabad’s implementation of the IMF requirements had been “strong” despite devastating floods that killed more than 1,000 people and devastated farmland, forcing the government to revise its 4.2 percent growth target to 3.9 percent.

“What is important going forward in order to strengthen growth and to maintain the level of macroeconomic stability is to accelerate the structural reforms,” he said at the meeting.

Azour underlined Pakistan’s plans to privatize some of the SOEs and improve financial management of important public entities, particularly power companies, as an important way for the country to boost its capacity to cater to the economy for additional exports.

“This comes in addition to the effort that the authorities have made in order to reform their tariffs, which will allow the private sector of Pakistan to become more competitive,” the IMF official said.