Afghanistan drops out of Pakistan’s top export markets as shipments plunge 55% to $336 million

Afghanistan fell out of Pakistan’s list of leading export destinations in December of FY2025–26 after bilateral and transit trade between the two countries was suspended, according to data released by the Trade Development Authority of Pakistan (TDAP).

The development marks a sharp reversal from FY25, when Afghanistan ranked eighth among Pakistan’s top export markets. Pakistan’s exports to Afghanistan rose 31% year-on-year in FY25 to $1.3 billion, up from $1 billion in FY24.

Trade between the two countries was suspended in October last year after Pakistan accused Kabul of failing to act against militant groups allegedly involved in attacks on Pakistani security forces and civilians.

TDAP data shows that during July–December FY26, Afghanistan slipped to the 12th position among Pakistan’s export destinations. Exports during the period declined by 55% to $336 million, compared with $754 million in the same period last year.

In December export rankings, TDAP listed the United States, China, the United Kingdom, Germany, the Netherlands, Sri Lanka, and several Central Asian and European countries among Pakistan’s major buyers, while Afghanistan was absent.

In previous years, Afghanistan had consistently featured among Pakistan’s key export markets, particularly for food items, textiles, cement, pharmaceuticals, and construction materials.

Traders in Balochistan say the suspension has led to significant losses. Exporters report that Afghan buyers are increasingly sourcing goods from alternative suppliers in Iran, Central Asia, and other neighbouring markets, raising concerns about long-term loss of market share even if trade routes reopen.

Business groups on both sides of the border have warned that the prolonged disruption has hurt the regional economy. The Pak-Afghan Joint Chamber of Commerce and Industry has said the suspension of bilateral and transit trade has caused major losses and affected millions of people by disrupting livelihoods and commercial activity across the region.