Pakistan’s $200m medicine exports to Afghanistan disrupted after 3-month border closure

Pakistan’s pharmaceutical exports to Afghanistan, valued at around $150 million to $200 million, have been severely disrupted by closure of major land routes at Torkham and Chaman since October 2025, former Pakistan Pharmaceutical Manufacturers Association chairman told Business Recorder on Tuesday.

Afghanistan has been one of Pakistan’s top markets for medicines, accounting for around 35% of total medicine exports worldwide, but the three-month suspension of border trade has halted deliveries and caused “serious financial losses and disrupting cash-flows at the domestic pharmaceutical firms,” Dr Kaiser Waheed said.

Talking to Business Recorder, Waheed said, “This has resulted in halting medicine-laden trucks on the borders, giving serious financial losses and disrupting cash-flows at the domestic pharmaceutical firms.”

He warned that the interruption could undermine Pakistan’s export momentum and its chances of reaching $1 billion in medicine export sales in the ongoing fiscal year 2025-26 (FY26). “I would say Pakistan is not about to lose the market, but it has lost the market, putting a big question mark whether the country can maintain momentum towards sustaining growth in pharmaceutical exports and touch the $1 billion mark in overseas market sales in the ongoing fiscal year 2025-26 (FY26),” Waheed said.

Had the border remained open and export growth continued, Waheed projected Pakistan could have achieved the $1 billion milestone, with numbers even higher if medical devices, surgical goods, nutraceuticals, and food supplements were included.

The industry leader noted that Pakistan exported a wide range of medicines for chronic illnesses and common conditions to Afghanistan before the closure, describing the sector’s recent performance as strong. In FY25, Pakistani pharmaceutical exports reached $457 million, propelling the country to fifth position among fastest-growing export categories, while total therapeutic goods exports — including pharmaceuticals, surgicals, food supplements, medical devices, and nutraceuticals — reached $909 million, just $91 million shy of $1 billion.

Waheed said losses go beyond export figures, as some firms had established sales offices and teams in Afghanistan that were also lost due to the prolonged closure. He added that a few companies have managed limited exports via air freight on the weekly Islamabad-Kabul flight, but volumes remain nominal.

While acknowledging the border shutdown’s security rationale, Waheed stressed its economic impact: “Losing the Afghanistan market means a serious setback in exports to us. It will be hard to find alternate markets immediately. It may take significant time, in case trade remains suspended going forward,” he said.

Reports indicate that Iran, India, and Bangladesh are stepping in to supply medicines into Afghanistan amid the gap created by the trade suspension, and Russian products may also enter Afghan markets via Central Asian routes if the closure persists.