Pak Asia Youth Forum

Don't just dream it
Be a bridge. Build a better tomorrow

Collapse of Pak-Afghan Trade and its Impact on Both Countries

Collapse of Pak-Afghan Trade and its Impact on Both Countries

On 16th November 2025, the Pak Asia Youth Forum hosted a detailed session titled “Collapse of Pak–Afghan Trade and Its Impact on Both Countries.” The discussion was moderated by Haris Ihsan and Omeema Rehman, featuring two speakers: Mr. Shahid Hussain, Vice President of the Sarhad Chamber of Commerce and Industry (KPK), and Mr. Hidayat Jan Tanai, Founder of the Afghanistan Solidarity for Social and Humanity Organization. The session lasted 1 hour, 12 minutes, and 36 seconds and focused on the growing tensions between Pakistan and Afghanistan and the resulting decline in bilateral trade.

Highlights from Mr. Shahid Hussain

Mr. Shahid Hussain presented his views on the importance of restoring stable trade relations between Pakistan and Afghanistan, emphasizing that continued hostility harms both nations. His key points included:

Dependence on Transit Trade:

Both Pakistan and Afghanistan rely heavily on transit routes for their trade activities, and their economies are closely tied to these corridors. He stressed that these trade routes cannot function smoothly or deliver mutual benefits when political tensions, mistrust, and border disruptions continue to interfere with normal commercial flow.

Impact of Irresponsible Statements:

He pointed out that reckless remarks from Pakistani officials, especially from the defence or foreign ministries, only worsen relations by unnecessarily provoking the Afghan side. Such statements intensify hostilities and effectively strengthen anti-Pakistan narratives, contributing to further instability.

Need for Inclusive Dialogue:

He emphasized that for any trade-related discussion to be meaningful, it must involve business leaders, traders, and tribal elders who understand ground realities. According to him, border closures are not a sustainable or realistic solution, as they only damage livelihoods and disrupt economic activity on both sides.

Public Opposition to Terrorism:

He stated that ordinary Afghans strongly oppose terrorism and extremist elements. Despite this, they are the ones who suffer the most from the instability, violence, and economic losses created by such groups, which further worsens their living conditions.

Call for Regional Cooperation:

He concluded that, as neighboring Muslim countries, Pakistan and Afghanistan should focus on cooperation instead of conflict. Long-term peace, economic stability, and regional prosperity can only be achieved if both nations work together rather than remain locked in cycles of blame and hostility.

Highlights from Mr. Hidayat Jan Tanai

Mr. Hidayat Jan Tanai discussed the political tensions, misinformation, and economic consequences stemming from the collapse of trade. His key insights included:

Severe Impact of Trade Breakdown:

The collapse of cross-border trade has created serious disruptions for both Pakistan and Afghanistan, weakening their economies and slowing commercial activity that previously sustained thousands of livelihoods.

Escalation Due to Official Remarks:

Statements made by Pakistan’s defence minister or Afghanistan’s FM have intensified tensions at an already delicate moment, deepening mistrust and making diplomatic engagement more difficult.

TTP Issue and Afghan Regime’s Stance:

Even with substantial evidence of TTP involvement, the Afghan government’s refusal to acknowledge the group’s presence has added to the friction, undermining efforts to address a core security concern between the two countries.

Strong Cultural and Economic Bonds:

The two nations are closely tied through shared culture, language, and long-standing trade practices, with Afghan traders heavily dependent on Pakistan’s markets for both imports and exports.

Afghanistan’s Strategic Importance:

Afghanistan remains crucial for Pakistan’s future regional connectivity, especially regarding access to Central Asia, and this importance persists even with broader support from partners like China.

Regional Damage from Instability:

Although informal or limited trade continues, ongoing instability is eroding confidence, reducing economic opportunities across the region, and restricting the potential for broader development.

General Discussion

During the Q&A session, participants raised questions about Afghan propaganda against Pakistan, the Durand Line narrative, and the challenges of online trade. Mr. Tanai explained that the Afghan regime lacks public legitimacy, clarified that the Durand Line issue is settled by the people, not regimes, and highlighted logistical and propaganda-related barriers, including India’s role in amplifying misinformation.

Key Takeaways

  • Pak–Afghan trade continues to collapse due to political tensions, mistrust, and irresponsible official statements.
  • Both economies are suffering, despite shared cultural and commercial ties.
  • Stability in Afghanistan is crucial for Pakistan’s regional connectivity.
  • Cooperation, not confrontation, is the only path toward economic prosperity for both neighbors.

The session concluded with Omeema Rehman delivering the closing remarks, summarizing that Pakistan and Afghanistan can only progress through cooperation. She thanked the speakers and audience on behalf of the Pak Asia Youth Forum.

Scroll to Top