Financial adviser Muzzammil Aslam says lockdowns hurt jobs and income, with levies on border trade falling 80%
Trucks loaded with supplies wait to cross into Afghanistan at the Friendship Gate crossing in the Pakistan-Afghan border town of Chaman. PHOTO: REUTERS/FILE
KHYBER PAKHTUNKHWA:
The Khyber Pakhtunkhwa government has warned the federal government that the prolonged closure of trade on the Pakistan-Afghan border is leading to revenue losses and job losses.
In a letter to Federal Commerce Minister Jam Kamal, KP’s financial advisor Muzzammil Aslam said cross-border trade had been severely disrupted with commercial activity “effectively halted”. He noted that the situation was particularly worrying as Pakistan faced declining exports, slowing economic growth and rising unemployment.
Aslam said the province had been informed of an “alarming” 80 per cent drop in collections from the Infrastructure Development Cess, a levy linked to border trade. He attached a letter from the Khyber Pakhtunkhwa Revenue Authority (KPRA) on tax receipts, highlighting broader revenue challenges.
The financial advisor called for a high-level meeting of federal and provincial stakeholders to assess the revenue implications for Khyber Pakhtunkhwa and address the challenges faced by exporters and traders.
Border closure
Major border crossings with Afghanistan have remained closed to regular trade and transit since October 10, 2025, following deadly clashes along the border and reports of Pakistani airstrikes. Islamabad has linked the escalation to demands that Kabul act against militants it says are launching attacks from Afghan soil, something the Taliban has denied.
Read: Pakistan closes border with Afghanistan after cross-border fire
A ceasefire was discussed in negotiations hosted by Qatar and Turkey and was said to have held, but trade has not resumed, with negotiations stalled as both sides continue to blame each other.
In early December, Pakistani officials said Islamabad had approved a limited humanitarian exception to allow U.N. relief containers into Afghanistan while maintaining broader border closures for regular trade.
New efforts were made to break the impasse through trade-focused engagement. Pakistan and Afghanistan have agreed to form a 13-member joint committee to hold formal negotiations at Torkham to ease border management issues and restore cross-border trade.
