Afghanistan shifts trade from Pakistan to Central Asia and Iran

September 3, 2026 at 08:11 AM1 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Afghanistan is redirecting its trade away from Pakistan toward Central Asia and Iran, driven by border closures, Taliban policy, and new transit corridors. Bilateral trade with Pakistan held near $2 billion in fiscal 2024-25 before collapsing after October 2025 border clashes. The shift reflects a structural reorientation rather than a temporary response.

Key Facts

Afghanistan's trade with Pakistan reached nearly $2.0 billion in fiscal 2024-25 (July 2024–June 2025), according to Pakistan's foreign ministry.
Pakistan's exports to Afghanistan fell 56% to $219.5 million in the first half of fiscal 2025-26 (July–December 2025).
Border crossings at Torkham and Chaman were closed and armed clashes occurred in October 2025.
Trade with Uzbekistan, Turkmenistan, Kazakhstan, Tajikistan, and Kyrgyzstan grew steadily during the same period.

Trade Shift Drivers

Deteriorating ties between Kabul and Islamabad accelerated Afghanistan's pivot away from Pakistan. The Taliban administration has pursued alternative corridors through Central Asia and Iran to reduce dependence on Pakistan. Border closures at Torkham and Chaman and mutual trade restrictions followed armed clashes in October 2025.

Trade Data Trends

Bilateral trade between Pakistan and Afghanistan was approximately $1.85 billion in fiscal 2022-23 and $1.60 billion in fiscal 2023-24. Trade recovered to about $1.99–2.0 billion in fiscal 2024-25 before the crisis, according to Pakistan's foreign ministry. Pakistan's exports to Afghanistan dropped 56% to $219.5 million in July–December 2025. Trade with Central Asian states and Iran showed steady growth over the same period.