Afghanistan is actively pursuing new trade partnerships to reduce its economic dependence on Pakistan, following a recent border clash that has brought bilateral relations to a historic low. The strategic shift comes after a deadly cross-border fire in October led to a temporary frontier closure, leaving dozens of Afghan trucks stranded with perishable goods.
The Taliban-led government is now accelerating efforts to establish alternative trade routes through Iran, Central Asia, and beyond. Abdul Ghani Baradar, Afghanistan’s Deputy Prime Minister for Economic Affairs, has publicly urged traders to “redirect their trade toward other alternative routes instead of Pakistan,” warning that Kabul would not intervene to protect businesses that continue relying exclusively on Pakistani corridors.
The border closure has inflicted significant economic damage on both nations. According to the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), losses on both sides have exceeded $100 million, affecting up to 25,000 border workers. Pakistan is Afghanistan’s primary trading partner, accounting for 45% of Afghan exports in 2024, mostly perishable agricultural products such as figs, pistachios, grapes, and pomegranates, valued at $1.4 billion.
Afghanistan, in its efforts to find alternatives that reduce its economic dependence on Pakistan,🇵🇰 is holding renewed meetings with ministers in India,🇮🇳 Iran,🇮🇷 and Central Asian countries. Pakistan — historically Kabul’s largest trading partner — is losing its share of the pic.twitter.com/fqxartPVfj
— S.Haidar Hashmi (@HaidarHashmi0) November 21, 2025In response to the crisis, Afghanistan has rapidly expanded trade with neighbouring countries. Mohammad Yousuf Amin, head of the Chamber of Commerce in Herat, reported that trade with Iran and Turkmenistan has increased by 60-70% since mid-October. In a significant development, Afghanistan exported apples and pomegranates to Russia for the first time last month, taking advantage of Moscow’s official recognition of the Taliban administration.
The diversification strategy extends to South Asia as well. Ariana Afghan Airlines recently reduced freight rates to India, a massive market of 1.4 billion people, while Kabul dispatched its Commerce and Industry Minister to New Delhi for high-level talks.
Read: Russia Offers to Mediate Between Pakistan and Afghanistan to Ease Tensions
However, economic analysts note substantial obstacles to completely replacing Pakistani trade routes. Torek Farhadi, a former IMF adviser, explained that “Afghanistan has too many fruits and vegetables it cannot store because there are no refrigerated warehouses,” making rapid export essential. While Iran’s Chabahar port offers an alternative to Pakistan’s southern harbours, Farhadi noted it is farther, costlier, and hampered by US sanctions on Tehran.
The human cost of the trade disruption continues to mount. In Pakistan’s border regions, prices for Afghan produce have skyrocketed, with grapes now costing four times as much and tomatoes more than doubling. Thousands of shipping containers bound for Afghanistan and Central Asia remain stuck in Pakistani ports, accumulating daily charges of $150-$200 per container and creating what the PAJCCI describes as an “unbearable” collective economic burden.
