K-P Warns Centre as Pak-Afghan Border Trade Remains Shut

In a letter to Federal Commerce Minister Jam Kamal, K-P Adviser on Finance Muzzammil Aslam said cross-border trade had been severely disrupted, with commercial activity “effectively coming to a halt.”

According to the report, Aslam described the situation as particularly concerning at a time when Pakistan is facing declining exports, slower economic growth and rising unemployment.

He said the province had recorded an “alarming” 80% decline in collections of the Infrastructure Development Cess, a levy linked to border trade. The adviser attached correspondence from the Khyber Pakhtunkhwa Revenue Authority outlining broader tax revenue challenges.

Aslam called for a high-level meeting involving federal and provincial stakeholders to assess the financial impact on Khyber Pakhtunkhwa and address challenges faced by exporters and traders.

The Express Tribune reported that the main border crossings between Pakistan and Afghanistan have remained closed to regular trade and transit since Oct. 10, 2025, following deadly clashes along the frontier and reports of Pakistani airstrikes.

Islamabad has said the escalation is tied to its demands that Kabul take action against militants allegedly launching attacks from Afghan soil, an accusation the Taliban has denied.

Although a ceasefire was discussed during talks hosted by Qatar and Turkey and was reported to be holding, trade has yet to resume, with negotiations stalled as both sides continue to blame each other.

In early December 2025, Pakistani officials approved a limited humanitarian exception allowing United Nations relief containers to enter Afghanistan, while maintaining the broader closure for regular trade.

More recently, Pakistan and Afghanistan agreed to form a 13-member joint committee to hold formal negotiations at the Torkham border crossing aimed at easing border-management issues and restoring cross-border trade, the report said.