Afghanistan’s transit trade via Pakistan plunges 60% to $974M in FY 2024–25

Afghanistan’s transit imports through Pakistan plunged by 60% in fiscal year 2024–25, falling to $974 million from $2.408 billion a year earlier, according to official customs data.

The sharp decline indicates a significant contraction in transit trade activity between the two countries over the full fiscal year.

However, year-on-year (YoY) data shows signs of a potential rebound. In May 2025, Afghan transit trade through Pakistan rose to $87 million, up 21% from $72 million in May 2024.

Month-on-month (MoM) data also points to a modest recovery, with transit trade increasing by 13% from $77 million in April 2025 to $87 million in May.

Despite the drop in transit flows, Pakistan’s overall goods trade with Afghanistan grew considerably during FY 2024–25. Total bilateral trade reached $1.998 billion, a 25% increase from $1.603 billion in the previous year.

The growth was largely driven by a 31% rise in Pakistan’s exports to Afghanistan, which surged to $1.391 billion from $1.065 billion, reflecting robust demand for Pakistani products across the border.

Imports from Afghanistan also posted growth, increasing by 13% from $539 million to $607 million.

In the final quarter (April–June) of FY 2024–25, Pakistan’s exports to Afghanistan stood at $340 million — a 24% rise compared to $275 million during the same period last year.

Strong Q4 trade lifted the overall annual growth to 31%, despite stagnation earlier in the fiscal year. Total bilateral trade in Q4 reached $423 million, up 17% YoY from $362 million, and 5% higher than the $403 million recorded in Q3, according to the data.

The strong fourth-quarter performance, led by exports, helped offset the drop in Afghan transit imports and highlights sustained commercial engagement between the two countries.