A year after trade between Pakistan and Afghanistan was suspended, exporters are struggling with heavy losses, stranded goods and costly alternative routes to Central Asian markets, CNA reported from Peshawar on Thursday. Business groups estimate that more than US$2.5 billion in trade has been lost since then — yaani 250 crore dollars of trade gone.

Source: CNA via Metapress

Trade between the two countries was halted in October 2025 following deadly clashes along the Pakistan-Afghanistan border. Islamabad has accused militants based in Afghanistan of carrying out attacks in Pakistan — allegations that Kabul denies, CNA reported.

The suspension has hit Pakistan's pharmaceutical industry hardest in export terms: Afghanistan counts as its largest export market, along with businesses that rely on the country as a gateway to Central Asia, CNA said.

The official figures underline the hit. Pakistan's pharmaceutical exports fell 30.26% to US$319.01 million in fiscal year 2025-26 — yaani about 31.9 crore dollars — from US$457.46 million a year earlier, The News reported, citing destination-wise figures on the Trade Development Authority's Pakistan Pharma Portal sourced from PRAL. Afghanistan bought US$155.68 million worth of Pakistani medicines in FY25, equal to 34.1% of the total, and the decline has continued: in the first quarter of FY27, medicine exports dropped a further 25.53% to US$73.30 million.

Source: The News International

30.26%fall in Pakistan's pharma exports in FY2025-26
$2.5 billion+trade business groups estimate lost since the halt — yaani 250 crore dollars
34.1%share of Pakistan's FY25 pharma exports bought by Afghanistan

Former Pakistan Pharmaceutical Manufacturers Association chairperson Tauqeer ul Haq said the suspension of trade with Afghanistan has caused major losses for the pharmaceutical industry and the national exchequer, and that Afghan patients have also been affected as they are pushed towards more expensive medicines, The News reported. He said the association has raised the issue with the government and that Federal Planning Minister Ahsan Iqbal has promised to take it up with the relevant authorities.

The exporter losses come on top of the wider collapse in bilateral trade since the border closures. Read the Pakistan-Afghanistan trade plunge report