Afghanistan-Pakistan transit trade plungestransit trade plunges to 367 million USD
Afghanistan-Pakistan transit trade has suffered one of its steepest declines, plunging to just 11,592 containers worth $367 million in FY26, according to recent data from Islamabad.
Reverse transit collapsed from $454 million in FY25 to just $7 million as Afghanistan increasingly relies on Iran and Central Asian trade routes due to border closures.
This economic contraction matters as it deepens Afghanistan's financial isolation and forces a critical shift in its trade dependencies.
Afghan Trade Perspective
Afghan authorities and trade experts view the decline as a direct consequence of Pakistan's border closures and the Taliban's governance policies that have disrupted cross-border commerce, forcing Afghanistan to seek alternative routes through Iran and Central Asia.
Western Analyst View
Western analysts and regional observers describe the slump as a result of political instability under the Taliban regime and tightened border security by Pakistan, which has severed a vital economic lifeline and increased Afghanistan's isolation.
- Afghanistan's main trade corridor with Pakistan passes through the Torkham border, which has seen frequent closures due to political tensions since 2021.
- The Taliban government banned most international NGOs from operating in Afghanistan in late 2022, further complicating trade and aid logistics.
- Iran has become a growing alternative trade partner for Afghanistan, with road routes through the western border expanding to bypass Pakistan.
