Transit trade between Afghanistan and Pakistan experienced a sharp fall, reaching USD 367 million. This significant decrease was from a previous level of USD 5 billion, recorded prior to the Taliban’s re-establishment of power in 2021. Afghanistan’s capital, Kabul, progressively shifted its reliance towards Iranian trade corridors, thereby lessening its need for Pakistani port facilities. The closure of Pakistan’s border in October 2025 further exacerbated the impact on this trade. Such a redirection of trade routes led to increased economic burdens and fewer job prospects.
According to a recent media report, the transit trade between Afghanistan and Pakistan plummeted to USD 367 million during the most recent fiscal year, down from USD 5 billion in 2021.
The transit commerce between these two nations has undergone one of its most severe contractions, dropping to a mere 11,592 containers, valued at USD 367 million, in fiscal year 2026, as
Before the Taliban regained control in 2021, trade volumes were significantly higher, at almost 89,000 containers worth USD 5 billion. The report indicated that this decline was partly due to Kabul’s increasing dependence on Iranian trade pathways over recent years.
In October 2025, Pakistan sealed its border with Afghanistan, citing security concerns, a move that somewhat affected the flow of transit trade.
Nevertheless, the available figures suggest that the transit trade had already started to slow down considerably before Islamabad imposed these limitations, the report noted.
Container movement saw an increase from approximately 60,500 units in fiscal year 2017 to almost 89,000 units in fiscal year 2021, directly preceding the Taliban’s re-establishment of authority.
After the Taliban’s return to power, transit cargo reached 102,886 units, with a total value of USD 6.7 billion in fiscal year 2023.
Despite this, transit volumes subsequently decreased to 54,114 containers in fiscal year 2024 and further to 42,959 containers, valued at USD 1.36 billion, in fiscal year 2025. This decline occurred significantly before Pakistan’s border closure in October 2025.
“The border closure did not initiate Kabul’s search for alternative trade routes. Rather, it marked the culmination of a strategy the Afghan Taliban had already begun to reduce Afghanistan’s dependence on Pakistani ports,” the report quoted trade analysts as saying.
While this shift diminished Pakistan’s influence, it simultaneously imposed economic burdens on Afghanistan.
Increased expenses for transportation and logistics are eventually transferred to consumers, thereby contributing to inflationary pressures.
The report stated that this burden is felt most acutely in eastern and southern Afghanistan, especially among Pakhtun communities who have historically depended on Pakistani products and cross-border trade.
A decrease in commercial operations has also resulted in a reduction of job opportunities and diminished household earnings for populations on both sides of the frontier.
