Bilateral trade between Pakistan and Afghanistan has surged past $1 billion in the first half of 2025, driven by recent diplomatic engagements and Kabul’s renewed commitments on counterterrorism, particularly regarding the Tehrik-i-Taliban Pakistan (TTP). According to a report by The Express Tribune.
According to the Afghan Ministry of Commerce, Afghanistan exported $277 million worth of goods to Pakistan between January and June 2025, while Pakistani exports to Afghanistan stood at $712 million during the same period. The report reflects a growing interest in cross-border trade despite ongoing political and security concerns.
Afghanistan’s key exports included cotton, coal, soft stone, and dried fruits, while Pakistan sent across industrial and food products.
“Pakistan and Afghanistan are natural trade partners due to their geographic proximity,” a senior Afghan official told The Express Tribune over the phone. “But recent bans and restrictions on several items have created uncertainty among traders. To restore full trade potential, we must de-link commerce from political tensions, security incidents, and the TTP issue.”
Trade between the two neighbors once peaked above $3 billion, but years of instability, visa restrictions, and border closures have taken a toll. Noor Khan, a coal trader based in Jalalabad, urged Islamabad to ease customs duties and reactivate facilitation committees at all four main crossings: Torkham, Ghulam Khan, Kharlachi, and Spin Boldak (Chaman). He also stressed the importance of restoring services at Wagah Border, Karachi, and Gwadar ports, where Afghan traders continue to face hurdles.
“Despite persistent challenges, including periodic trade disruptions following security incidents, the six-month trade figures signal improved diplomatic engagement,” said Noor Khan, citing the impact of Deputy Prime Minister Ishaq Dar’s visit to Kabul and efforts by Ambassador Sadiq Khan.
According to Haq Nawaz Khan, senior correspondent at The Washington Post, the uptick in trade is a promising indicator. “If the current pace continues uninterrupted, bilateral trade could reach $2 billion by the end of 2025,” he told The Tribune.
Haq added that returning to the $2 billion annual trade mark last seen nearly a decade ago is realistic if both countries intensify diplomatic efforts. However, reaching the long-term target of $6 billion will be difficult under the current security climate.
Between 2020 and 2023, annual trade volumes remained under $1 billion, hampered by frequent border closures and political tension. Despite these setbacks, Islamabad has taken steps to ensure continuity in trade, with efforts led by Foreign Minister Dar and Ambassador Sadiq receiving praise for spurring growth in both exports and imports.
Data from the Afghan Ministry of Industry and Commerce confirms a significant trade imbalance in Pakistan’s favor, with Pakistan accounting for roughly 70% of total trade, while Afghanistan contributes around 30%.
“Political issues must no longer dictate trade dynamics,” said Haq. “The recent surge in militancy in Pakistan’s Khyber Pakhtunkhwa region is a serious concern, but it should not disrupt economic ties. If barriers persist, other regional players may seize market share in both countries.”
In a related development, Pakistan’s special envoy is scheduled to visit Kabul in the coming days for talks aimed at improving the trade environment and addressing TTP-linked tensions, particularly in the northern and southern districts.
