Pakistan-Afghanistan Trade Crosses $1 Billion in First Half of 2025
Bilateral trade between Pakistan and Afghanistan has surpassed $1 billion during the first six months of 2025, reflecting improved diplomatic engagement and positive momentum in economic cooperation.
According to the Afghan Ministry of Commerce, Afghanistan exported goods worth $277 million to Pakistan, while Pakistan’s exports to Afghanistan reached $712 million from January to June 2025.
Key Export Commodities
Afghanistan’s main exports included:
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Cotton
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Coal
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Dry fruits
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Soft stones
On the other hand, Pakistan supplied a range of industrial goods and food products to Afghanistan, highlighting the complementary nature of trade between the two neighboring countries.
Positive Outlook Despite Challenges
A senior Afghan official told The Express Tribune that while both countries are natural trade partners, political tensions and security concerns have occasionally hindered progress. “Trade should be treated independently of political and security issues. Restrictions and border hurdles impact traders and reduce the potential for economic growth,” the official noted.
Trade experts believe that bilateral trade could reach $2 billion by the end of 2025, if disruptions are minimized. Deputy Prime Minister Ishaq Dar’s recent visit to Kabul, along with the diplomatic efforts of Ambassador Muhammad Sadiq, have played a significant role in strengthening trade ties.
Traders Urge Border and Customs Reforms
Noor Khan, a coal trader from Jalalabad, emphasized the need for smoother customs processes and functional border facilities. “Activating facilitation committees at major border crossings—Torkham, Ghulam Khan, Kharlachi, and Chaman (Spin Boldak)—is essential,” he said. Afghan traders have also called for improved services at Wagah Border, Karachi, and Gwadar ports, where delays and restrictions have posed challenges.
Balanced Trade and Diplomatic Coordination
According to Haq Nawaz Khan, a senior journalist with The Washington Post, the current trade figures show promise. “Bilateral trade may once again reach the $2 billion mark last seen a decade ago. However, reaching the long-term goal of $6 billion will require stable diplomatic coordination and resolution of ongoing security concerns,” he explained.
Between 2020 and 2023, trade volumes remained sluggish, largely due to political instability and the temporary closure of key trade routes. Despite these issues, efforts by both governments are now leading to more consistent trade flows.
The most recent data indicates that Pakistan accounts for around 70% of total bilateral trade, while Afghanistan contributes approximately 30%. Analysts have reiterated that separating economic cooperation from political disputes is vital for long-term trade sustainability.
Future Engagement
Pakistan’s special envoy is expected to visit Kabul in the coming days to further discuss trade facilitation and regional security, including concerns related to the Tehrik-i-Taliban Pakistan (TTP). The visit aims to strengthen trust and ensure uninterrupted economic activity between the two countries.
