‘Market is almost dead’: Traders in Pakistani town decry border closures due to Afghanistan clashes

Traders sit idle at market in Chaman, a border town between Pakistan and Afghanistan. (AN Photo)
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Updated 19 October 2025
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‘Market is almost dead’: Traders in Pakistani town decry border closures due to Afghanistan clashes

  • Key border crossings of Chaman, Torkham were closed for trade last week amid deadly Pakistan-Afghanistan clashes
  • Traders in Chaman say closure of key crossing causing unemployment, business losses on both sides of the border

CHAMAN/BALOCHISTAN: Hajji Abdul Bari Achakzai’s office wears a deserted look. The empty chairs in his office in the southwestern Pakistani city of Chaman reflect the impact that border closures, triggered by clashes between Pakistan and Afghanistan, have had on bilateral trade in both countries.

Pakistan and Afghanistan saw fierce fighting on Oct. 11, 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.

The clashes caused border closures between Pakistan and Afghanistan last week, through the northwestern border crossing in Torkham and southwestern Chaman crossing in Balochistan, effectively halting trade and the movement of people between the two countries.

Seventy-year-old Achakzai’s family has been in the business of importing and exporting goods from Chaman since the past 60 years. The border closures have taken a toll on his business and affected Chaman, he said.

“Due to these repeated border closures, Chaman has reached near-total unemployment,” Achakzai told Arab News on Saturday.

Pakistan is a key exporter of goods, mainly fresh fruits, rice, flour and other edible items to Afghanistan, while it imports dry fruits and other scrap material from the country.

Islamabad has repeatedly accused the administration in Kabul of failing to take action against militant outfits such as the Tehreek-e-Taliban Pakistan (TTP) and the separatist Balochistan Liberation Army (BLA), which it alleges carry out attacks targeting Pakistan from Afghan soil. Kabul denies the allegations.

The TTP have become emboldened since the Taliban returned to power in Afghanistan in 2021, carrying out attacks against Pakistani security forces. These attacks have caused repeated clashes between Pakistani and Afghan border forces, triggering frequent border closures.

Both countries agreed to a ceasefire in Doha on Saturday, though tensions remain heightened, amid closure of border crossings.

As per the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), the annual Pakistan-Afghan trade volume has declined from $2.5 billion dollars to $10 million during the last two fiscal years.

Apart from Torkham in the northwest, the Chaman–Spin Boldak crossing is one of the busiest and most strategically important trade routes between Pakistan and Afghanistan.

“Chaman used to be a key route for trade between Kabul-Karachi and Hirat-New Delhi and this transit point remained a source of income for us,” Achakzai noted.

Zia Ul Haq Sarhardi, senior vice president of the PAJCCI, said recent tensions between Pakistan and Afghanistan are causing losses worth billions of rupees that cannot be estimated accurately. He described the escalation in tensions as a “major tragedy.”

“I don’t see the border will reopen easily this time because the Pak-Afghan bilateral relations have been worsening,” Sarhardi said.

Muhammad Ayoub Meerani, president of the Quetta Chamber of Commerce and Industry (QCCI) in Balochistan’s capital city, blamed the Pakistani government’s policies for declining trade with Afghanistan. 

“Afghanistan’s landlocked market has moved away from us and into the hands of Iran, Uzbekistan, and other countries,” Meerani told Arab News.

“Even small, perishable items are not being exported from here causing millions of dollars’ damages to the business community of Balochistan.”

He called on both countries to end their conflict and for border trade to resume.

DESERTED MARKETS

Local traders remain busy hunting for customers in Chaman, where Naimatullah Achakzai, 36, runs a shop selling dry fruits on Taj Road.

“The market is almost dead,” he said. “Around 60 percent of the goods in our shop come from Afghanistan, like almonds, raisins, cashews, walnuts, and all kinds of dry fruits. We bring them from across the border and supply them throughout Pakistan.”

He warned that if the situation persists, around 2 million people in Chaman and Afghanistan’s Spin Boldak border town would be “devastated.”

Hajji Jamal Shah Achakzai, president of the traders’ association in Chaman district, agreed.

“Our entire livelihood depends on the border. Goods that used to go out and come in from the border are now almost non-existent,” he said.

“Chaman has suffered heavy losses. If the situation continues, people will start migration from this bordering town.”


Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

Updated 8 sec ago
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Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

  • Pakistani officials, Binance team discuss coordination between Islamabad, local banks and global exchanges
  • Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight

ISLAMABAD: Pakistan’s finance officials and the team of a global cryptocurrency exchange on Friday held discussions aimed at modernizing the country’s digital payments system and building local talent pipelines to meet rising demand for blockchain and Web3 skills, the finance ministry said.

The development took place during a high-level meeting between Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib, domestic bank presidents and a Binance team led by Global CEO Richard Teng. The meeting was held to advance work on Pakistan’s National Digital Asset Framework, a regulatory setup to govern Pakistan’s digital assets.

Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight, and encouraging innovation in blockchain-based financial services.

“Participants reviewed opportunities to modernize Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38 billion annual remittance flows,” the finance ministry said in a statement. 

“Discussions also emphasized building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.”

Blockchain is a type of digital database that is shared, transparent and tamper-resistant. Instead of being stored on one computer, the data is kept on a distributed network of computers, making it very hard to alter or hack.

Web3 refers to the next generation of the Internet built using blockchain, focusing on giving users more control over their data, identity and digital assets rather than big tech companies controlling it.

Participants of the meeting also discussed sovereign debt tokenization, which is the process of converting a country’s debt such as government bonds, into digital tokens on a blockchain, the ministry said. 

Aurangzeb called for close coordination between the government, domestic banks and global exchanges to modernize Pakistan’s payment landscape.

Participants of the meeting also discussed considering a “time-bound amnesty” to encourage users to move assets onto regulated platforms, stressing the need for stronger verifications and a risk-mitigation system.

Pakistan has attempted in recent months to tap into the country’s growing crypto market, crack down on money laundering and terror financing, and promote responsible innovation — a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.

In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.