Business

Pak-Afghan bilateral trade falls 6% in first quarter of FY2025-26

Pakistan’s bilateral trade with Afghanistan has declined by 6 percent in the first quarter of the current fiscal year, according to official trade data shared by sources.

From July to September 2025, the total trade volume between the two countries stood at $475 million, compared to $502 million during the same period last year.

The fall in trade was mainly driven by a sharp 15 percent drop in Pakistan’s exports to Afghanistan, which decreased from $320 million last year to $271 million in the ongoing fiscal year’s first quarter.

In contrast, Pakistan’s imports from Afghanistan rose by 12 percent, reaching $203 million from $182 million in the same period of the previous year.

Trade experts attribute the decline in Pakistan’s exports to border restrictions, currency fluctuations, and shifting regional trade dynamics, while the increase in imports is linked to higher inflows of coal, fresh fruits, and other commodities from Afghanistan.

The overall slowdown highlights growing trade imbalances and underscores the need for both sides to revise their trade facilitation mechanisms to restore momentum in bilateral economic ties.

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