Border closures paralyze fruit trade

Afghan traders say pomegranates from Kandahari are arriving in Pakistan continuously this year via the Torkham border. PHOTO: EXPRESS/EHTESHAM KHAN

RAWALPINDI:

The prolonged weeks-long suspension of commercial traffic at the Torkham border, fueled by rising political tensions between Pakistan and Afghanistan, has triggered serious financial turmoil for wholesalers in Rawalpindi and Islamabad.

Dozens of large and medium-sized wholesalers in the twin cities saw investments worth tens of crores of rupees wiped out. Several long-established merchants, once among the city’s most successful, say they have been reduced from millionaire status to near ruin.

Significant advances were paid to Afghan suppliers for batches of high-value fresh produce – particularly Kandahari grapes and pomegranates – vegetables and, above all, dried fruits such as raisins and dried apricots.

Containers and semi-trailers loaded with these perishable and semi-perishable goods have been stuck for weeks on the Afghan side of the Torkham crossing. As fresh produce – pomegranates, grapes and vegetables – has now deteriorated to the point where it can no longer be recovered, many trailers are reportedly being redirected to Afghan markets.

Afghan traders have categorically refused to reimburse their Pakistani counterparts, insisting that they bear no responsibility for damage caused solely by the prolonged border closure. They claim the shipments were shipped in full compliance with contractual obligations, saying they have video evidence of the loading process and proof of transportation costs paid.

Sources in wholesale markets in Rawalpindi and Islamabad confirm individual losses of Rs40 million to Rs100 million, with a large trading consortium facing an estimated loss of Rs150 million.

While Afghan exporters have shown willingness to renegotiate the price of dried fruits – offering a 15 to 20 percent reduction – they have categorically refused any concessions regarding fresh produce, particularly grapes, Kandahari pomegranates and vegetables.

Ghulam Qadir Mir, president of the Anjuman Tajran Sabzi Mandi (Vegetable Market Traders’ Association), attributes the surge in prices of grapes and pomegranates in the twin cities, which are now selling at Rs 600-700 per kilogram, directly to the disruption of the supply line from Afghanistan. The shortage has also pushed up prices of domestic grapes.

Given the severity of the crisis, traders are urging the Pakistani government to immediately engage in formal dialogue with Afghan authorities.

Their most pressing demand is that stranded containers and trailers – already paid for and awaiting entry – be granted one-time, extraordinary clearance to Pakistan, even if all future orders are suspended.

Haji Shafqat and Muhammad Meharban Khan, wholesalers of grapes, pomegranates and dried fruits, explained that reservations for Afghan produce are usually made before the season. Orders worth between Rs40m and Rs150m were placed in late August and September to ensure on-time transportation. However, political tensions and subsequent border closures led to catastrophic financial losses.

They note that while border closures have occurred in the past, shipments were typically released within a week to ten days. Expecting a similar result this time, they proceeded with their seasonal orders – only to see their goods deteriorate with the arrival of winter.

Conversely, trucks carrying Pakistani goods to Afghanistan are also blocked on the Pakistani side, inflicting reciprocal economic damage on traders across the border.

In an effort to survive, the hardest-hit wholesalers in Rawalpindi and Islamabad were forced to take out large new loans to take over a modest local fruit and vegetable business.

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