Afghan transit trade halted as border tensions rise

Thousands of containers stranded at Karachi, border points; traders report Rs1 billion daily losses as goods sold at h

KARACHI:

Amid rising border tensions between Pakistan and Afghanistan, the Government of Pakistan has indefinitely suspended the transportation of Afghan Transit Trade (ATT) consignments to Afghanistan, bringing the clearance of thousands of containers at Karachi Port to a standstill.

According to officials, the Federal Board of Revenue (FBR) has issued directives to stop the transportation of Afghan Transit Trade from Karachi Port and cancelled all gate passes for ATT consignments. In compliance, container terminal administrations have begun offloading Afghan-bound containers from vehicles.

Before the suspension, the Director General of Customs (Afghan Transit Trade) convened a special meeting at Customs House, Karachi, after which a Customs General Order was issued to implement the decision.

Sources said customs stations in Quetta and Peshawar have reached full storage capacity, with no space for additional containers. Port Qasim has also halted the clearance of ATT consignments. The FBR's order will remain in effect until further notice.

They added that several ships carrying Afghan cargo are expected to anchor at Karachi Port in the coming days. Before the suspension, around 400 vehicles had been loaded with ATT containers, which have now been offloaded. Following the decision, about 300 trucks have been stopped at the Chaman border and 200 at Torkham, leaving hundreds of containers stranded.

Reports suggest that goods imported under the Afghan Transit Trade are now being sold at half their original value in both countries due to the disruption.

According to Junaid Makda, President of the Pakistan-Afghanistan Joint Chamber of Commerce, 291 ATT containers are stranded at Karachi Port and Port Qasim, while 500 are stuck at Chaman, 400 at Torkham, 100 at Ghulam Khan, and another 100 at Kharlachi. He said hundreds of additional containers loaded on ships are awaiting offloading.

Makda added that cargo already unloaded from ships is stuck at the ports, creating a severe shortage of storage space. Under the Afghan Transit Trade arrangement, around 1,000 containers move daily between the two countries, but the suspension has brought the trade flow to a halt. Warehouses at Torkham are now completely filled.

He further said traders on both sides have begun selling perishable goods, including food items, at half their prices to prevent spoilage. Makda estimated daily losses from the suspension at nearly Rs1 billion. The goods imported under ATT include electronics, machinery, home appliances, textiles, confectionery, chocolates, and other perishables. Over the past four days, traders have reportedly suffered losses worth billions of rupees.