K-P urges talks to revive Afghan border trade

PESHAWAR:

The Khyber-Pakhtunkhwa government has warned the federal government that the prolonged closure of the border trade with Afghanistan border is causing revenue losses and job cuts, amid the country's declining exports, slower economic growth, and rising unemployment.

In a letter to Federal Commerce Minister Jam Kamal, K-P's Adviser on Finance Muzzammil Aslam said that since the Pakistan-Afghanistan border closure, the cross-border commerce had been severely disrupted, with trading activity "effectively coming to a halt."

Aslam said the province had been informed of an "alarming" 80% decline in the collections of the Infrastructure Development Cess (IDC), a levy tied to border trade. He attached a letter from the provincial Revenue Authority (KPRA) on tax receipts, highlighting broader revenue challenges.

In view of these circumstances, Aslam called for convening a high-level meeting, involving relevant federal and provincial stakeholders, to review the revenue implications for K-P and to examine the challenges faced by exporters and traders.

The main border crossings with Afghanistan have remained closed to regular trade and transit since October 10, 2025, following deadly clashes along the frontier after Kabul failed to stem terrorist attacks in Pakistan originating from its soil.

A ceasefire was discussed in talks hosted by Qatar and Turkey and is holding, but trade has not resumed.