PABC pushes ahead with $110 million Afghanistan plant despite border closure

Pakistan Aluminium Beverage Cans Limited is proceeding with plans to establish a manufacturing plant in Afghanistan despite continued closure of the Pakistan-Afghanistan border since October 2025.

In its annual report, the company said the border shutdown, linked to security concerns and military operations, has disrupted trade with Afghanistan and Central Asian markets. A significant portion of its exports is either destined for these markets or routed through the Afghan corridor, limiting sales and affecting competitiveness.

PABC confirmed it is continuing work on its previously announced $110 million plant in Afghanistan, which is expected to have a production capacity of 1.3 billion beverage cans.

The company noted that domestic security conditions may also affect operations, including logistics, transportation and demand, due to ongoing counter-terrorism activity and related disruptions.

It added that global geopolitical developments, including conflicts in the Middle East, could influence consumer demand for multinational beverage brands, indirectly affecting orders from its customers.

The border closure has remained in place amid tensions between Pakistan and Afghanistan, with both sides exchanging accusations over security issues, affecting trade flows in the region.