Afghanistan Times
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KABUL – Afghanistan’s trade with Pakistan has plummeted by 60% this year, according to the Afghanistan Chamber of Commerce and Investment (ACCI), as the nation shifts its trade focus towards Iran. The drop marks a significant economic shift for Afghanistan, long reliant on Pakistan as its primary trade route to international markets.
Political tensions between Afghanistan and Pakistan, exacerbated by the Taliban’s takeover in 2021 and multiple regime changes in Islamabad, have led to increased trade restrictions. “Our exports and transit trade with Pakistan have been decreasing every day due to political and security issues,” said Khan Jan Alokozai, deputy head of the ACCI.
Afghan exports, which previously totaled around $2 billion annually with Pakistan, are projected to plummet to $500 million this year. Trade barriers imposed by Pakistan, including the prohibition of 200-300 Afghan products, have further exacerbated the decline.
Meanwhile, Iran has stepped in to fill the gap, with Afghan imports from Iran soaring to $2 billion last year. Afghanistan’s transit trade has increasingly shifted to Iranian ports, such as Chabahar and Bandar Abbas, with improving trade relations between the two countries.
Despite Pakistani ports still being more cost-effective for Afghan traders, particularly for those in the eastern regions, the challenges of border closures and high taxes have driven the shift towards Iran.
Traders in Afghanistan remain hopeful for a resolution to the political tensions with Pakistan, as delays in cross-border trade continue to cause significant losses.
“We hope the government can resolve these issues and support Afghan businessmen,” said Ismail Niazi, a shopkeeper in Jalalabad.
The rapid decline in trade with Pakistan could signal a long-term shift in Afghanistan’s economic landscape as it builds stronger ties with its western neighbors.
