In a key sign of improving economic relations, bilateral trade between Pakistan and Afghanistan reached $1 billion in just the first six months of 2025 a figure that reflects growing regional cooperation despite underlying political and security complexities.
According to data released by the Afghan Ministry of Commerce, Pakistan exported $712 million in goods primarily food and industrial items while Afghanistan exported $277 million worth of cotton, coal, dry fruits, and soft stones to Pakistan.
This surge in trade comes amid renewed diplomatic engagement, with Deputy Prime Minister Ishaq Dar and Ambassador Sadiq Khan playing a vital role in bridging dialogue and easing commercial friction between the two countries.
Industry analysts say the trade volume could double by year-end, reviving hopes of hitting the $6 billion target envisioned by economic planners. However, this depends heavily on separating trade from security issues, streamlining border operations, and lifting certain import/export restrictions.
Traders and stakeholders have also called for:
- Better visa facilitation
- Restoration of port services in Karachi, Gwadar, and Wagah
- Active customs support at Torkham, Ghulam Khan, Kharlachi, and Spin Boldak
Despite setbacks, the current data reflects a positive turnaround after years of stagnation. From 2020–2023, annual trade stayed below $1B due to security-related disruptions.
“Pakistan and Afghanistan are natural trade partners. We must ensure that commerce is shielded from political tensions to avoid losing market share to external players,” one senior trade journalist noted.
With a scheduled visit by Pakistan’s special envoy to Kabul in the pipeline, further improvements in trade relations appear likely setting the stage for a more stable and productive South Asian corridor.
