November 21, 2025
A fiery border fight last month between Afghanistan and Pakistan shook their trade ties to the core, pushing Afghanistan to urgently look for new trading friends. These two South Asian neighbours have been at odds since the Taliban took over Kabul in 2021. Pakistan says Afghanistan hides militants who carry out attacks across the border—a charge the Taliban denies.
Abdul Ghani Baradar, Afghanistan’s deputy prime minister for economic affairs, gave a strong warning to traders last week: “redirect their trade toward other alternative routes instead of Pakistan.” This is a big deal because Pakistan is Afghanistan’s top trade partner. It supplies things like rice, medicines, and raw materials. Plus, Pakistan takes in 45 percent of Afghanistan’s exports in 2024, says the World Bank.
More than 70 percent of those exports are fresh farm products like figs, pistachios, grapes and pomegranates, worth around $1.4 billion. But when border violence erupted on October 12, dozens of Afghan trucks packed with rotting fruits got stuck. The fragile peace now barely holds, yet the losses are massive—over $100 million on both sides. About 25,000 workers at the border are out of work, the Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) reports.
Baradar made it clear Kabul will not help traders who keep betting on Pakistan. Afraid of more shocks, the Taliban is now looking to Iran, Central Asia, and even Russia for trade deals. Since mid-October, trade with Iran and Turkmenistan jumped 60-70 percent, says Mohammad Yousuf Amin, head of the Herat Chamber of Commerce.
For the first time last month, Kabul sent apples and pomegranates all the way to Russia, the only country that officially recognizes the Taliban. They are hungry for more foreign money and acceptance, but tough sanctions on their leaders scare away investors.
India’s huge market is also a shining hope. The Afghan state airline cut freight charges to India, and shortly after, Kabul sent its commerce minister to New Delhi. Economic expert Torek Farhadi told AFP, “Afghanistan has too many fruits and vegetables it cannot store because there are no refrigerated warehouses. Exporting is the only way. And quickly, before the products spoil.”
But reaching other ports like Iran’s Chabahar comes with a price. Farhadi noted it’s farther away and costlier, plus US sanctions on Tehran make it tricky.
"It's better for both countries to end this trade war... They need each other," Farhadi said. Afghanistan depends on Pakistan’s big market of 240 million people and its sea access. Pakistan, in turn, wants Afghan transit for its Central Asia trade. Despite saying the border closure stops militants, Pakistan’s economy is hurting too.
In Peshawar, near the border, Afghan fruits have vanished from markets. Grapes now cost four times more, and tomatoes have doubled in price to over 200 rupees (70 cents) per kilo, AFP found.
On Monday, PAJCCI urged Islamabad to act fast. They warned that containers headed to Afghanistan and Central Asia pile up in Pakistan’s ports, adding $150-$200 daily in charges each. “With thousands of containers stuck, the collective economic burden has become unbearable and continues to grow with each passing day,” they said.
Among those caught in the mess is Naeem Shah, a 48-year-old truck driver waiting in Pakistan’s border town of Chaman, carrying sugar and cooking oil to Afghanistan. “I haven't been paid for a month. No matter who I call, they say there is no money because the border is closed,” he told AFP. “If it doesn't reopen, we will be distraught.”
The clock is ticking. With fresh fruits rotting and belts tightening on both sides, can these neighbours find peace and revive their crucial trade? The world watches as this sizzling saga unfolds.
Read More at Economictimes →
Tags:
Afghanistan
Pakistan
Trade dispute
Border Clash
Exports
Taliban
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