Pakistan loses $1 billion in exports as Afghanistan trade suspension disrupts regional commerce

Pakistan’s Commerce Secretary Jawad Paul told a National Assembly committee that the halt to bilateral and transit trade with Afghanistan has cut exports by about $1 billion. He said the restrictions also disrupted routes to Central Asian markets, including shipments of oranges and potatoes, while arguing that security concerns outweighed commercial interests.

Paul reported a further $387 million in trade losses from July, October amid regional conflict-related disruptions. Shipping delays and higher port charges raised costs for exporters, while the government arranged cargo vessels to keep meat and other goods moving to Gulf markets.

Despite these setbacks, the Commerce Ministry expects merchandise exports to reach $35 billion in FY2026-27, compared with around $32 billion in FY2025-26. The committee was also told that Pakistan has $5.9 billion of identified but unused export potential across 20 product categories.