Archive · 15 Dec 2025
Afghanistan-Pakistan Trade War Disrupts Economies
Afghanistan and Pakistan are not trading with each other right now because they are in a disagreement.
Pakistan is upset with Afghanistan's government, the Taliban, for not stopping militants who attack Pakistan.
This has caused a lot of problems for people on both sides.
Businesses are losing money, and important goods like food and medicine are not getting through.
Both countries are trying to find new trading partners, but it's been hard.
People are hoping the situation will get better soon, but it's not looking good right now.
Pakistan has cut off cross-border trade with Afghanistan, hurting millions of farmers and traders.
Trade worth $2 billion annually has been suspended for nearly two months.
Afghanistan is struggling to redirect trade routes, with new agreements with India and Iran.
The trade war has exacerbated economic hardships, with rising poverty and humanitarian needs.
Both countries accuse each other of not taking responsibility for border security and militant activities.
- Who
- Afghanistan and Pakistan
- What
- Trade war due to political tensions
- When
- Since October 11, with ongoing issues since 2021
- Where
- Border areas, Peshawar, and other trade hubs
- Why
- Pakistan aims to punish Taliban for not controlling militants; Taliban denies supporting TTP
- Trade Volume
- $2 billion in bilateral trade last year
- Afghanistan's Dependence on Pakistan
- More than 40% of exports
- Afghan Population in Need
- More than half of 42 million
- Pakistan's Poverty Rate
- 25%, highest in nearly a decade
- Afghan Traders' Losses
- Considerable losses in Peshawar's Afghan Board Market
- Afghanistan's New Trade Routes
- India and Iran
- Afghan Exports Increase
- 13% from September to October
