Quit Pakistan routes or lose state support, Afghan deputy premier warns traders

Afghanistan’s deputy prime minister for economic affairs, Mullah Abdul Ghani Baradar, speaks during a
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Updated 12 November 2025
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Quit Pakistan routes or lose state support, Afghan deputy premier warns traders

  • Deputy PM Mullah Baradar tells businessmen to seek alternative import and export routes within three months
  • Ties have sharply deteriorated amid border closures, airstrikes, mounting militant attacks blamed on Afghan-based groups

PESHAWAR: Afghanistan’s deputy prime minister for economic affairs, Mullah Abdul Ghani Baradar, on Wednesday urged Afghan traders and industrialists to end their reliance on Pakistan for imports and exports and seek alternative routes within three months, warning that the government would no longer take responsibility for problems arising from commerce through its southern neighbor.

The directive underscores the breakdown of trust between the two neighbors, whose relations have plunged as Islamabad accuses the Kabul government of harboring the Tehreek-e-Taliban Pakistan (TTP), which frequently claims attacks against Pakistani state targets. 

The border between Pakistan and Afghanistan has remained closed since last month following deadly clashes between the two nations and Pakistani airstrikes inside Afghan territory. Relations are likely to grow even more strained after a suicide bombing in Islamabad this week that killed 12 people and an attempted assault on a cadet college in the country’s northwest, which Pakistan has blamed on militants operating from Afghan soil. Kabul denies it harbors insurgent groups. 

“All the country’s traders and industrialists should seek alternative routes for trade… those items that we were buying in Pakistan, now other markets and countries be explored,” Baradar said during a meeting with traders in Kabul. 

“After this notice, if traders continue to export and import items to and from Pakistan, then the Islamic Emirate has no responsibility to hear their grievances or address their issues.”

Baradar gave traders three months to wind up their contracts and accounts in Pakistan, accusing Islamabad of repeatedly exploiting trade and humanitarian matters for political leverage. He cited the closure of routes during Afghan harvest seasons and the import of “low-quality medicines” from Pakistan as major problems.

“Pakistan has repeatedly blocked trade routes… and has politically exploited commercial and humanitarian matters, harming traders and industrialists of both countries,” Baradar said.

Pakistan has long served as Afghanistan’s primary transit corridor for goods and aid, but bilateral commerce, constantly at the mercy of political relations, has been hit hard by escalating tensions, cross-border attacks and visa restrictions.

Afghanistan’s realistic alternatives to Pakistan’s trade routes lie to its north and west, through Iran, Central Asia, and China. The Chabahar Port in Iran, developed with Indian support, offers a viable maritime outlet via the Arabian Sea that bypasses Pakistan entirely, though its use has been limited by sanctions and logistics costs. To the north, Afghanistan has access to Central Asian corridors through Uzbekistan, Turkmenistan, and Tajikistan, connecting to regional transport networks like the Trans-Caspian International Route and China’s Belt and Road corridors. 

However, these routes are longer, more expensive, and less efficient for perishable goods, meaning that while diversification is possible, replacing Pakistan’s short and cost-effective access to Karachi and Gwadar ports remains a major challenge.

Bilateral trade between Pakistan and Afghanistan totaled nearly $2 billion in fiscal year 2024-25, according to official data from both sides. Pakistan exported about $1.14 billion worth of goods, mainly food products, construction materials, textiles, and pharmaceuticals, while importing coal, dried fruits, gemstones, and agricultural produce valued at roughly $850 million from Afghanistan. 

Despite periodic border closures and political tensions, Afghanistan remains one of Pakistan’s top regional trading partners, with much of the commerce conducted through the key Torkham and Chaman crossings that link the two countries’ supply chains and consumer markets.


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

Updated 05 December 2025
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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.