Pak-Afghan border closure hits key export sectors, losses mount

The Pakistan-Afghanistan border closure since Oct 11 has disrupted exports, pushed up domestic prices, and forced import adjustments across multiple sectors, industry sources said. According to a report by Dawn News.

Cement manufacturers report northern mills are shifting to imported coal from South Africa, Indonesia, and Mozambique after Afghan coal supplies halted. Darra coal prices have risen to Rs42,000-45,000 per tonne from Rs30,000-32,000. Cement exports to Afghanistan, accounting for about seven per cent of total shipments, are stalled, hitting firms like Cherat, Fauji, and Maple Leaf Cement.

Pharmaceutical exports, worth $187 million of Pakistan’s $1.8 billion shipments to Afghanistan, are also affected. Informal trade routes, previously three times the legal volume, remain blocked. The Searle Pakistan estimates losses of Rs2 billion, further compounded by Afghanistan’s three-month ban on medicine imports.

Fruit and vegetable exports totaling $150 million annually, including bananas, kinnow, mangoes, and potatoes, are being diverted domestically or destroyed. Pomegranate wholesale prices have jumped to Rs4,000-4,500 per 10kg carton, while Iranian apples and grapes enter the market at Rs2,000-3,000 per 10kg carton.

Other exports, including ghee, cooking oil, wheat, and flour, are largely curtailed. Pakistan now loses wheat and flour markets to Russia, Turkmenistan, and Kazakhstan, resulting in lost foreign exchange earnings. Attempts to reroute exports via Iran are hampered by banking restrictions and State Bank of Pakistan refusal to waive financial instrument requirements.

Analysts warn that unless the border reopens, losses across cement, pharma, fruit, and other export sectors will continue, threatening Pakistan’s trade stability and regional supply chains.