Pakistan-Afghanistan trade declines despite rise in sugar, malt extract exports

Pakistan’s bilateral trade with Afghanistan has declined despite the significant increase in exports of sugar — up by 4,333% — and malt extract, up by 237%.

According to Pakistan Customs statistics, the total trade between Pakistan and Afghanistan contracted by 20%, from $140 million in February last year to $112 million in February 2025.

Meanwhile, the overall trade volume dropped from $194 million in January last year to $112 million in January 2025, marking a 42% decrease due to stricter border controls, trade policy changes, and diplomatic tensions.

It is pertinent to note that Pakistan and Afghanistan reopened the Torkham border for bilateral trade after a 25-day closure on Wednesday, which will increase the flow of trade between both countries.

Data shows that Pakistan’s exports to Afghanistan declined by 30% in February to $73 million compared to $104 million in February 2024. The declining exports of products include rice, food preparations, bird eggs, sugar confectionary, soaps, cereal, meal and paper and paperboard.

On the other hand, sugar exports jumped 4,333%, to $262.7 million in the first eight months of fiscal year 2024-25 (FY25) compared to $5.9 million from the same period in FY24.

The increasing exports of products include pharmaceutical products (48%), malt extract (237%), fruits & vegetables (16%), cement (29%), aluminum and articles thereof (38%), plastics and articles thereof (38%), wood and articles (27%), animal or veg fats/oils (35%), iron and steel (80%), maize or corn (180%), motorcycles (34%), tanning, dyeing extracts (53%), machinery (67%), rubber and articles thereof (44%), bakery items (44%) and tractors (6%).

Data shows that Pakistan’s imports from Afghanistan have been relatively stable, with minor fluctuations. Imports fell by 8% to $39 million in January from $42 million in January 2024. However, in February, imports slightly increased by 7% to $39 million from $36 million in 2024.

Afghan transit trade

Forward cargo, which refers to goods imported into Afghanistan through Pakistan, dropped by 67% to just $729 million for the period of July-February 2024-25 compared to $2,197 million in the same period last fiscal year.

Whereas, reverse cargo, which includes goods exported from Afghanistan, saw a decrease of 46%, falling from $46 million to $25 million.

Overall, the total transit trade decreased by 66%, from $2,243 million last year to $754 million this year.

It is worth mentioning here that Pakistan has intensified its efforts to combat smuggling, particularly focusing on its role as a transit point for commercial imports to Afghanistan.