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Pakistans trade ban with Afghanistan is bleeding Islamabad with thousand cuts. How?

| Updated on: Dec 02, 2025 | 07:37 AM

Following the escalating border tension with Afghanistan, Pakistan reportedly decided to ban trade with Kabul. Decision to ban trade was taken after Pakistan's DG ISPR, Lieutenant General Ahmed Sharif Chaudhry warned Afghanistan. Following the recent attacks, Chaudhry said, "blood and business cannot go together".

The decision was taken as the relations between the two nations are reportedly sinking to their lowest point. The decision by Pakistan now seems to have backfired.

Following the border clashes, Pakistan expelled hundreds of Afghan nationals during the harsh winter months. After border clashes and mass expulsion of Afghan nationals, a trade war has erupted between Pakistan and Afghanistan. What's interesting is that Pakistan's decision has now backfired and is now hurting Islamabad itself.

Since the closure of border trade points on October 11, Afghanistan has quickly adapted by redirecting commerce. Afghanistan, however, acted smartly & immediately redirected trade through Iran, India, and the Central Asian republics.

While Afghanistan seems to have recovered from the trade ban, Pakistan has taken a severe hit. The current halt in cross-border trade is dealing a heavy blow to Pakistan's fragile economy. Dawn reports that the ban is affecting Pakistan's trade, manufacturing, and export sectors.

Reports suggest that Pakistan's decision has sparked outrage in Khyber Pakhtunkhwa. Traders and manufacturers in KPK are demanding the immediate lifting of the ban. Earlier, traders lost trillions of rupees because of the 45-day closure of the Durand Line: Ariana News Network. A report by a Pakistan-based journalist claimed that Pakistan's trade war with Afghanistan has now "boomeranged".

The ban has triggered shortages, price spikes, and production disruptions for Pakistan. Afghans are sharing videos of Pakistani mandis, showing piles of produce lying unsold. As Pakistan faces a major hit, the US has urged Islamabad to reconsider its decision.

Pak Dy PM Ishaq Dar may soon discuss the matter with Pak PM Sharif and Army Chief Asim Munir: Tolo News. While Pakistan struggles, Afghanistan is working towards diversifying its trade. Recently, two Afghan ministers visited India with the aim of finding a new trade partner. The Taliban regime is also working to open trade channels with Turkey.

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