Pakistan suspends Afghan transit trade from Karachi ports due to logistical issues

Pakistan’s Federal Board of Revenue (FBR) has ordered an immediate suspension of Afghan transit trade transportation from Karachi’s ports, citing logistical constraints and terminal congestion as key reasons behind the move, officials said Thursday.

All gate passes issued for Afghan transit trade have been canceled, and terminal operators at Karachi Port and Port Qasim have begun offloading containers from vehicles following the directive.

The order follows clashes at the border between Pakistan and Afghanistan in recent days that have disrupted movement and trade. A day earlier, the countries agreed to a 48-hour ceasefire.

The decision was taken during a high-level meeting chaired by the director general of Afghan transit trade at the Customs House Karachi. A Customs General Order (CGO) has since been issued to formalize the suspension.

Customs stations in Quetta and Peshawar have reportedly reached full capacity, with no space left to accommodate additional transit containers. Clearance operations at Karachi Port and Port Qasim have also been put on hold until further notice. Authorities confirmed that the suspension will remain in effect until the situation stabilizes.

The disruption comes as Pakistan-Afghanistan bilateral trade continues to decline, with figures from the first quarter of FY 2025-26 showing a 6% year-on-year drop, totaling $475 million. Pakistan’s exports to Afghanistan fell 15% to $271 million, while Afghan exports rose 12% to $203 million, according to FBR data.

Despite a 16% year-on-year increase in Afghan transit trade through Pakistan in the July-September quarter, the abrupt halt from Karachi could impact forward and reverse transit flows in the coming weeks.

The government has not announced a timeline for the resumption of full operations.