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.