Torkham closure costs $60m in trade
Torkham, a key border crossing between Pakistan and Afghanistan in the Khyber District of Khyber Pakhtunkhwa, remained closed for the 21st day on Friday amid rising concern of the businessmen of both the countries who are suffering huge losses due to the closure.
The crossing was closed on February 21 after escalation of tensions between the border forces of the two neighbors due to construction of some structures close to the border by Afghan authorities in violation of an agreement.
During subsequent exchanges of fire, three Afghan soldiers died while eight Pakistani paramilitary troops also sustained injuries.
Last week, the two countries formed their respective jirgas which met at the border crossing and enabled a ceasefire at the border crossing. The Afghan jirga, however, did not hold a meeting with its Pakistani counterpart on Thursday after the inclusion of dozens of new members in the Pakistani delegation.
According to sources, no meeting between the jirgas took place on Friday because of a public holiday in Afghanistan. However, the jirgas are likely to meet today (Saturday) to resolve the crisis.
Customs sources said trade suspension is causing an estimated daily loss of $3 million in bilateral trade. They said imports from Afghanistan average $1.6 million daily, while exports amount to $1.4 million. Over the last 20 days, approximately $60 million in trade has been lost.
Torkham Border Crossing facilitates the daily movement of around 10,000 people to Afghanistan. However, all movement and trade has been suspended since February 21 and over 5,000 trucks, including those carrying perishable goods, are stranded, causing heavy financial losses.
Junaid Makda, president of the Pak-Afghan Joint Chamber of Commerce (PAJCCI), warned that if trade barriers are not removed, Pakistan risks losing its potential as a key trade corridor in the region and missing out on vast economic opportunities.
"There is a need for immediate measures to resolve the growing trade crisis between Pakistan, Afghanistan, and Central Asian countries. The ongoing border closure, rising transportation costs, and increasing trade restrictions are not only damaging cross-border business but also hurting Pakistan's economy," he said.
Makda said Khyber Pakhtunkhwa's government has recently reduced the Infrastructure Development Cess (IDC) to 1% on both forward and reverse transit trade with Afghanistan.
He argued that any form of IDC on transit trade is unjustified, as it discourages legitimate businesses and violates international commitments.
The imposition of IDC and the border closure are forcing Afghan traders to shift from Pakistani routes to Iranian ports, causing long-term damage to Pakistan's trade network.
He said despite continuous efforts by PAJCCI, the situation has worsened.
"The prolonged closure has diverted trade towards Chabahar and Bandar Abbas, making them more competitive routes. Uncertainty and long delays are eroding traders' confidence and discouraging investors."
Makda said under international protocols, Pakistan is responsible for facilitating trade for landlocked countries like Afghanistan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
10 minutes ago
- Express Tribune
Pakistan backs diplomacy on Iran
Pakistan reaffirmed its support for resolving Iran nuclear issue through peaceful means when the UN Security Council on Tuesday discussed the latest developments related to the implementation of its 2015 resolution endorsing the Joint Comprehensive Plan of Action (JCPOA), which limits the Iranian atomic programme. "Diplomatic engagement and the resumption of dialogue are the best means to resolve all outstanding issues," Ambassador Asim Iftikhar Ahmad, permanent representative of Pakistan to the UN, told the 15-member Council on Tuesday. "Diplomacy has delivered previously and with the necessary political will, it can certainly deliver again," he said, referring to JCPOA, which was signed in 2015 after extensive negotiations between Iran and several world powers, including the United States. The US, however, withdrew from the agreement in 2018 under the Trump administration, and the deal is now considered "essentially defunct". Tuesday's Security Council session followed a brokered ceasefire that brought a pause to recent hostilities — air strikes by Israel and the United States on Iranian nuclear sites, and Tehran's subsequent missile attacks on a United States base in Qatar. In his remarks, Ambassador Asim Iftikhar said the IAEA, the UN agency responsible for verifying compliance with respective nuclear safeguards obligations of member states, must be enabled to fulfil this statutory function. "We believe that verification activities by the IAEA should continue unimpeded," he added. The Security Council, the Pakistani envoy said, should allow sufficient time to continuing efforts between the IAEA and Iran as well as other parties to resolve outstanding issues. Recent developments, he said, have yet again manifested the grave dangers that present themselves when there are violations of the UN Charter and international law. "The cost of seeking to resolve issues through military means is more than evident," he said, adding, "The region, and indeed the whole world, cannot be hostage to such adventures, dangerous precedents and spiraling escalations." With regards to recent developments, Ambassador Asim Iftikhar emphasized: Condemnation of violation of the sovereignty and territorial integrity of member states and, of the threat or use of force to settle disputes; Rejection of attacks on IAEA-safeguarded nuclear facilities; Sustained cessation of hostilities and a permanent ceasefire to allow resumption of dialogue and verification activities by the IAEA, and, Renew diplomatic engagement to seriously and faithfully address the outstanding issues in a cooperative manner. In conclusion, Ambassador Asim Iftikhar informed the Council that together with Russia and China, Pakistan has proposed a draft Council resolution in search of a peaceful solution to the concerns surrounding Iran's nuclear programme.
Express Tribune
2 hours ago
- Express Tribune
UK envoy eyes Pakistani investors
The United Kingdom's trade envoy to Pakistan, Mohammad Yasin, on Wednesday urged Islamabad to cement its relative economic stability and instil investor confidence, while also inviting Pakistani businesses to invest in the UK. In an interview with The Express Tribune at the end of his three-day visit to Pakistan, Yasin noted that the country was doing better than it was two years ago in terms of economic and political stability. "I would take the message that Pakistan is doing much better and is very serious, but it is a long road, and these policies need to be continued," said Yasin in response to a question. The envoy visited Pakistan to explore investment opportunities and to encourage local businesses to consider investing in the UK. He also met with several politicians and with the Special Investment Facilitation Council (SIFC) to raise issues affecting UK investors. Under the UK's 2035 growth policy, the country is seeking foreign investment across eight sectors, providing opportunities for Pakistani businesses as well. Yasin said the bilateral trade volume between the two countries currently stands at £4.7 billion, which he described as insufficient. He added that there is no upper limit to increasing this figure by 2035. His message to Pakistan's leadership, he said, was that the UK is open for investment, and Pakistani companies should seize the opportunity. "The UK is a haven for companies to invest in. We have launched a modern industrial strategy under the new government, focusing on eight different sectors. We are inviting companies from other countries to come invest in the UK — and we also want to invest in Pakistan." "Conversely, Pakistan must provide stability and confidence for UK investors," he added. The envoy acknowledged improvements in Pakistan's economic and political environment over the past 18 months, but stressed the importance of consistent long-term policies, particularly under the International Monetary Fund (IMF) programme, to maintain this trajectory. "Everybody recognises that, compared to only two years ago, things are much better — there's no doubt about that. But things have not been progressing when compared with other developing countries. I think more still needs to be done," he said. "A year and a half is a short time, and to attract long-term investment, you need to do more in the coming years," Yasin noted. He said Pakistan's young population — 65% under the age of 30 — and the rising number of young entrepreneurs, especially women, were national strengths. While optimistic about the country's direction, he reiterated the need for sustained policy consistency to maintain investor confidence. Yasin said bilateral trade could grow significantly and announced that a ministerial trade dialogue between the two countries would be held in the near future. He added that the ministerial trade dialogue would focus on breaking down barriers that currently hinder UK investors. Trade teams from both countries are finalising the agenda for the meeting, which will take place in London. "Security and stability are key factors for investors. Where they don't feel comfortable or confident, they simply do not invest," he said. Asked about the sectors where Pakistan could boost exports, Yasin identified information technology and agriculture as key areas. "We really want to encourage them to come over there," he added. Yasin said the UK could provide technical expertise to Pakistan in mineral extraction. A UK company has already secured a £53 million contract, he said, while consulting firm McKinsey is advising the Pakistani government on the regulatory and fiscal framework for the mining sector. He added that the UK is open to addressing Pakistan's concerns regarding non-tariff barriers and said these issues may be part of the upcoming ministerial agenda. Yasin stressed that Pakistan must invest in its supply chains to help small and medium-sized enterprises scale into larger businesses. He also assured that the UK's Developing Countries Trading Scheme — its replacement for the EU's GSP+ — will continue uninterrupted. "The UK is not in favour of protectionism and supports global and regional supply chains," he said. "UK companies are keen to invest in Pakistan. Please give them some stability, some confidence, so they can invest here. They really want to come and invest," Yasin reiterated. In response to another question, Yasin said the Pakistani government had taken steps in recent years that move toward long-term stability. However, he added, the country still needs sustained political, economic, and security stability to attract meaningful investment. "Investors will invest if they feel confident that their money is safe," he said. "Pakistanis living in the UK want to invest here to give back to the countrybut they haven't been able to do so," said Yasin, who was born in Pakistan. He noted that UK companies continue to face challenges related to intellectual property rights and pharmaceutical pricing, particularly due to the classification of medicines as essential or non-essential. Yasin said he raised these concerns with the SIFC.
Express Tribune
2 hours ago
- Express Tribune
US remains top buyer of Pakistani exports
The United States remained the top export destination for Pakistani products during the first eleven months of the current fiscal year 2024-25, followed by China and the United Kingdom, according to data released by the State Bank of Pakistan (SBP). Total exports to the US during July-May 2024-25 were recorded at $5,552.615 million, compared to $4,999.608 million during the same period in 2023-24, marking an increase of 11.06%. China ranked second, with Pakistani exports amounting to $2,270.032 million, down from $2,556.126 million last year, showing a decline of 11.19%. The United Kingdom was the third-largest export market, with exports reaching $1,985.167 million during the review period, compared to $1,863.566 million the previous year, according to SBP data. Among other countries, exports to the United Arab Emirates were recorded at $1,979.847 million, up from $1,879.640 million last year. Exports to Germany stood at $1,549.055 million, compared to $1,383.763 million a year earlier. Exports to the Netherlands (Holland) totalled $1,384.521 million, up from $1,275.110 million, while those to Italy were recorded at $1,046.224 million, slightly higher than last year's $1,032.472 million. Exports to Spain reached $1,354.836 million, compared to $1,334.277 million last year. Meanwhile, exports to Afghanistan were significantly higher, rising to $723.442 million from $511.627 million a year ago. Exports to Bangladesh also showed growth, reaching $728.303 million compared to $599.650 million last year. Similarly, exports to France during the review period stood at $520.389 million, up from $464.879 million, while exports to Belgium were recorded at $498.080 million, slightly lower than last year's $506.598 million.
