ISLAMABAD: A severe operational and financial crisis is gripping Pakistan’s transit trade sector, sparked by the prolonged closure of borders with Afghanistan, even as the government orders a heightened security crackdown on the smuggling of Afghan-origin goods.
Pakistan closed the border with Afghanistan after a clash between Pakistan’s armed forces and terrorist outfits in Afghanistan seemingly supported by Afghan government on the bidding of India.
Pakistan had been advising Afghanistan that their land must not be used for terrorism in Pakistan but they ignored these warnings and remained a pawn of India. The action taken by Pakistan forces had become very important. Pakistan is also suffering in terms of trade as exports to central Asia such as Pakistan made electronics, matches, cement etc. are halted.
Nonetheless, the stand taken by Field Marshall Asim Munir against terrorism is applaudable because there is no compromise on national security.
The developments, revealed in an official government circular and a desperate plea from trade bodies, highlight the escalating economic and security tensions between the two neighboring countries.
The Federal Board of Revenue (FBR), through its Customs Wing, has issued a strict directive to customs authorities in Balochistan, ordering them to “enhance vigilance to eliminate any attempt by criminal elements to bring in Afghan origin goods from any unauthorized land route.”
The circular, dated November 21, 2025, was addressed to the Chief Collector of Customs in Quetta. It explicitly links the border closure to security concerns.
This directive formalizes the government’s stance, tasking customs formations with enforcing the border closure and preventing any illegal cross-border trade.
Simultaneously, a coalition of bonded carriers and clearing agents has submitted an urgent appeal to the Ministry of Commerce and the FBR detailing a catastrophic financial situation resulting from the nearly two-month-long border closure.
According to the appeal, the crisis has led to:
Massive Detention and Demurrage Costs: Approximately 10,000 containers are stranded, accruing detention costs of nearly PKR 200 million per day. Port demurrage and yard charges have already accumulated to an estimated PKR 1.44 billion.
Stranded Vehicles and Drivers: Around 600 loaded vehicles are stuck at the Chaman and Torkham borders. The detention cost for these vehicles is estimated at PKR 270 million over 45 days. The drivers face extreme hardship, including exposure to harsh weather and a lack of basic facilities.
Blocked Financial Guarantees: Bank guarantees and security deposits worth hundreds of crores of rupees are frozen, crippling the liquidity of clearing agents and transporters. The sector warns it has “no liquidity left” to manage the mounting charges.
Facing “irreversible financial damage,” the trade bodies have proposed several urgent solutions to the government:
One-Time Border Crossing: Allow all vehicles currently at the border a final crossing into Afghanistan to release them and liquidate financial liabilities.
Safe Custody Arrangement: If crossing is impossible, shift the cargo to secure customs yards and release the vehicles to prevent further damage.
Permission for Re-Export: Grant a one-time permission to re-export the stranded consignments back to their origin to avert a total sectoral collapse.
Immediate Waiver of Charges: Formally instruct shipping lines and port terminals to waive all detention and demurrage charges accrued since the border closure.
The situation presents a stark conflict between uncompromising national security measures and the survival of a critical economic sector. While the government remains firm on its security-driven border policy, the appeal from trade bodies underscores that the very companies facilitating legitimate transit trade are being pushed to the brink of bankruptcy due to circumstances entirely beyond their control.
The coming days will test the government’s ability to balance its security imperatives with the need to prevent a collapse of the supply chain that serves not only Afghanistan but also other Central Asian states.