Torkham border crossing. Photo: The Express Tribune

Pakistan-Central Asia Trade Halts as Afghanistan Borders Remain Closed

The implications of Pakistan’s change in immigration and travel policies related to Afghanistan continue to escalate. In recent days, border crossings between the two countries have halted trade between Central Asia and Pakistan that passes through Afghanistan.

Most commercial truck drivers are people who live across the border and, for decades have been able to cross the Durand Line without a visa. The new regulations require people whose families and businesses span across the border to present a visa every time they cross. For some, that is several times a day.

Pakistani authorities say the measure is to enhance security, curb smuggling, and foster legal bilateral trade. According to Pakistani media, the policy went into effect on November 1, 2023, the same time when the forced deportation of refugees back to Afghanistan began. The Taliban in Afghanistan was given a two-and-a-half-month time window to adjust. Pakistani newspaper, The Express Tribune reported that “the Afghan authorities did not show any seriousness towards the measure as drivers coming from the other side did not carry their travel documents.”

The Torkham border, the bustling gateway between Pakistan and Afghanistan, closed on Friday, January 12th, leaving thousands of trucks laden mostly with perishable goods, including vegetables and fruits, stranded and waiting. 

Junaid Islamil Makda, the head of the Afghanistan-Pakistan Joint Chamber of Commerce and Industry (PAJCCI), told the media that not only is the Torkham border closed, but four other crossing points, including Chaman, Ghulam Khan, Angoor Ada, and Kharlachi are also currently shut for trucks. “Current circumstances are impacting both transit and bilateral trade,” he said, adding that the closure of key border crossings has also halted trade relations between Pakistan and Central Asian countries, posing a major challenge to Pakistan’s economic stability and hindering the flow of goods and services.

According to a Pakistani customs official, the daily average revenue from Pakistan-Afghanistan bilateral trade is Rs 50 million ($180,000), with a cargo vehicle costing more than Rs 15 million ($53,000).

Afghanistan and Pakistan trade relations are governed by an interim arrangement known as the Afghanistan-Pakistan Transit Trade Arrangement (APTTA), signed in 2010. According to the Pakistan-Afghanistan Joint Chamber of Commerce, trade between the two countries amounted to $2.5 billion in 2010, but it declined to $1.6 billion, registering a slight increase to over $1.8 billion in 2022-23.

Pakistan’s trade partnerships with Central Asian countries are on the rise, with hopes of achieving a significant advancement in trade volume in 2024. While the current trade volume between Pakistan and Kazakhstan has risen to $138 million in 2023, the aim is to elevate bilateral trade to a milestone of $1 billion in the coming years.

The Torkham border crossing had been closed many times last year, including in September 2023 when it was shut for nine days due to clashes between border guards, causing significant financial losses for traders.

Previously, Jan Khan Alakozai, the co-chairman of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry said that the closure of the border not only caused financial losses for traders in both countries but also resulted in an increase in market prices, as most of the cargo consists of food items that will perish if the border remains closed.

Relations have grown increasingly tense between Islamabad and Kabul in recent months, with Islamabad accusing the Taliban of failing to eliminate militant groups, including Tahreek-e-Taliban Pakistan, responsible for staging attacks on Pakistan from Afghanistan—a claim that the Taliban has repeatedly denied.