Dec. 29, 2025 | Islamabad: Exclusionary economic measures cause prolonged disruptions in
Pakistan-Afghanistan trade and transit, and generate wide-ranging economic and social
consequences across the region. Uncertainty, rather than cost alone, has emerged as the most
damaging factor, eroding livelihoods, weakening regional connectivity, and placing
disproportionate strain on border communities between the two countries.
These concerns were raised at the “Exploring Pathways to Pakistan-Afghanistan Trade and
Economic Connectivity” dialogue, organised by the Centre for Research and Security Studies
(CRSS) as part of its Beyond Boundaries initiative. The dialogue convened policymakers,
customs officials, business leaders, and economic experts from Pakistan and Afghanistan to
reflect on the evolving trade dynamics and their broader regional implications.
Khan Jan Alokozay, Co-President of the Pakistan-Afghanistan Joint Chamber of Commerce and
Industry (PAJCCI), emphasised that peace in the region is inseparable from economic stability,
underscoring that robust and predictable trade forms the foundation of durable bilateral
relations. Without continuity in trade, he cautioned, broader objectives of peace and regional
integration would remain fragile.
Fazal Moqeem Khan, former President of the Sarhad Chamber of Commerce and Industry,
called for the establishment of cross-border economic zones to institutionalise trade and transit
cooperation – with manufacturers on both sides collaborating and heightening joint stakes – and
move beyond ad hoc arrangements. He warned that isolated or one-sided approaches to trade
are not viable and ultimately weaken both economies.
Highlighting the human cost of trade disruptions, Mujeeb Shinwari, President of the All Torkham
Custom Clearing Agents Association, noted that border communities bear the brunt of repeated
closures, as their economic lifelines depend directly on cross-border trade. He observed that
persistent disruptions have crippled local economies and undermined livelihoods in already
vulnerable areas.
Emphasising the political economy of trade, Naqeebullah Safi, Executive Director of PAJCCI’s
Kabul Office, stressed that trade should shape politics rather than be subordinated to it. He
noted that while elite groups retain mobility through air travel, lower-income and border
populations have suffered disproportionately, warning that continued uncertainty risks
permanently diverting Afghan markets away from Pakistan and vice versa.
Ibrahim Shams, former Vice President of the Afghanistan Investment Support Agency (AISA),
underscored that economic deprivation lies at the core of instability. He cautioned that
prolonged trade blockages exacerbate insecurity rather than mitigate it, with ordinary citizens
bearing the heaviest costs.
Muhammad Ibrar Aimal, an Afghan scholar, highlighted how sustained disruptions have stalled
production, disrupted supply chains, and resulted in job losses, particularly in agriculture-linked
and small-scale industries operating across Pakistan, Afghanistan, and the wider region.
Ahmad Shah Yarzada, an Afghan businessman, called for a unified appeal for the normalisation
of trade and economic activity, jointly led by traders, tribal elders, and border communities on
both sides. He noted that with Pakistan–Afghanistan trade repeatedly disrupted, many Afghan
businesses have started pivoting towards Iran and Central Asia. While these alternative routes
involve higher operational costs, they offer greater certainty, underscoring the urgent need to
restore stability and predictability in Pakistan-Afghanistan trade relations.
Focusing on operational challenges, Arbab Qaiser, Chief Customs Wing, FBR Islamabad,
highlighted recent efforts to address the issue of pending containers at ports, pointing to
measures aimed at easing clearance delays and reducing bottlenecks. He emphasised that the
interlinked nature of regional economic dependencies requires improved operational
coordination and smoother communication among relevant stakeholders on both sides.
A common concern raised during the dialogue was the lack of organised and coordinated
engagement by chambers of commerce, which has limited structured communication between
traders and implementing authorities. Participants stressed the need for stronger private-sector
coordination and more organised advocacy to collectively identify procedural bottlenecks and
support smoother trade and transit operations.
Concluding the discussion, Imtiaz Gul, Executive Director of CRSS, warned that prolonged
deadlock in trade and economic connectivity carries consequences far beyond immediate
commercial losses. He noted that sustained disruptions shrink employment opportunities,
expand informal economies, and intensify social pressures, ultimately undermining long-term
regional stability. Restoring trade continuity, he emphasised, is not only an economic necessity
but a strategic imperative.
The dialogue reaffirmed that insulating trade from political volatility, enhancing institutional
coordination, and strengthening people-to-people and government-to-government
communication are central to safeguarding livelihoods and reinforcing stability across Pakistan,
Afghanistan, and Central Asia.
