The cost of the Pakistan-Afghanistan border closure

Summary

Business Daily (BBC World Service)

Episode: The cost of the Pakistan-Afghanistan border closure

Date: December 15, 2025
Host: Will Bain

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Episode Overview

This episode explores the severe economic and human consequences of the two-month closure of the Pakistan-Afghanistan border, caused by ongoing conflict and political tensions. With key trade routes blocked, tens of thousands of containers are stranded, businesses across Pakistan, Afghanistan, and Central Asia are facing devastation, and vital supplies—such as food and medicine—are going to waste. The episode features voices of traders, truck drivers, and leaders in the pharmaceutical and trade industries, highlighting not just the financial losses, but also the urgent humanitarian stakes of the standoff.

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Key Discussion Points & Insights

1. The Border Closure and Its Immediate Impact

• The border between Pakistan and Afghanistan has been closed for two months due to sporadic clashes over accusations of militancy.
• Will Bain paints a powerful picture of the consequences:
  • "Miles of trucks, rotting fruit and vital medicines going to waste..." [01:12]
  • Ceasefire breakdowns have led to disrupted lives and businesses on both sides.

2. Significance of the Border for Regional Trade

• Farhat Javid:
  • The border is described as "more than a crossing point, it's sort of a lifeline for traders on both sides." [01:27]
• The closure doesn’t just affect Pakistan and Afghanistan; it disrupts trade routes for Central Asian countries (Tajikistan, Kyrgyzstan, Uzbekistan), who are largely dependent on access to Pakistani ports.
• Alternative trade via Iran is complicated by international sanctions, making the Pakistan route essential. [04:17]

3. The Scale of the Economic Standstill

• Junaid Makhta, President of the Pakistan Afghanistan Joint Chamber of Commerce and Industry, gives a stark overview:
  • "As of today, 11,000 containers are stuck in Pakistan... It is totally jammed now." [05:00 - 05:10]
  • Key numbers (under normal conditions):
    • 500 transit containers, 750 export trucks, and 620 Afghan import trucks cross daily
    • 6,792 containers stopped at Karachi alone

4. Human Stories Behind the Blockade

• Farhat Javid shares about women entrepreneurs:
  • Female traders in conservative provinces like Khyber Pakhtunkhwa have seen their businesses collapse due to halted cross-border trade. [06:25 - 08:35]
  • Quote: "We train them, help them set up, and then suddenly the border closes and everything stops. This is not only about Afghanistan. Through Afghanistan, we reached markets in Central Asia too." [08:20]
• Truck drivers describe desperate conditions:
  • "We don't even have enough money here to buy food... We have even sold diesel from the truck." [Kamran Nasir, 08:49]
  • "The expenses for each vehicle have reached 200,000 rupees... I've even sold the diesel from my truck, 100 liters here, 150 liters there to cover the expenses." [09:07]

5. Critical Shortages: The Pharma Emergency

• Kamran Nasir, Chief Executive of AGP Pharma, details how the closure disrupts vital pharmaceutical exports:
  • "Out of that $500 million (total exports), roughly $200 million comes from Afghanistan. So it remains a significant market with about 30% of our export market share." [12:13]
  • Afghanistan relies on Pakistan for 80% of its medicines; the closure could lead to health crises.
  • "This means that prices would soar, people would not get medicines on time and there can be a health crisis back in Afghanistan." [13:44]
• Perishability is a key concern:
  • "Majority of it will go to waste because there is a shelf life and there is a strict regime under which they have to be kept while being transported." [14:42]

6. Political Stalemates and Calls for Mediation

• Junaid Makhta stresses the urgency:
  • "The need of the resolution is need of the hour right now, immediately. Lot of damages have taken place right now." [15:25]
  • Calls for international intervention (US, British High Commission) to help broker a solution
• Kamran Nasir emphasizes the humanitarian and business toll:
  • "We want this situation for humanity's sake to be resolved as soon as possible..." [16:36]
  • Acknowledges that pharmaceuticals, in particular, cannot be easily rerouted to new markets.
  • "In the pharmaceutical industry, you cannot replicate the same quantum of business in a short time frame... This would tend to be a permanent loss." [17:48]

7. No Resolution in Sight

• Farhat Javid details the political deadlock:
  • "Currently there are no negotiations taking place. Pakistan insists that until unless Afghanistan takes some action against the militant groups which are allegedly residing inside Afghanistan, there won't be any peace talks." [19:02]
  • Afghanistan denies involvement and faces international isolation, adding to the complexity of negotiations.

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Notable Quotes & Moments

• Farhat Javid:
  • "It is more than a crossing point, it's sort of a lifeline for traders on both sides." [01:27]
• Junaid Makhta:
  • “Out of these, 6,792 containers are halted exclusively at the Karachi terminal…” [05:10]
  • "The need of the resolution is need of the hour right now, immediately." [15:25]
• Kamran Nasir:
  • "So certainly it is very significant... About 30% of our export market share." [12:13]
  • “There is a huge number of patient flow that comes from Afghanistan to Pakistan for the treatment… so that population now would be suffering because they do not have access to a proper medical treatment in Pakistani hospitals." [13:24]
  • “Majority of it will go to waste because there is a shelf life…” [14:42]
  • "Pharma has a long gestation period. The time to market is significantly long. It takes two to three years to get products registered in other markets. So this would tend to be a permanent loss." [17:48]
• Anonymous Truck Driver (Kamran Nasir reads):
  • "We don't even have enough money here to buy food... I’ve even sold the diesel from my truck." [08:49]

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Important Timestamps

• 01:12 – Will Bain introduces the border closure crisis.
• 03:00 – Farhat Javid explains the conflict's background and pattern of border closures.
• 05:00 – Junaid Makhta shares numbers of stranded containers and requests to separate trade from politics.
• 06:25 – Farhat Javid describes the strategic significance of the border and traders’ challenges.
• 08:49 – Truck driver testimony about dire conditions at the border.
• 12:13 – Kamran Nasir discusses the export impact on Pakistan’s pharmaceutical industry.
• 13:44 – Kamran Nasir details risks of medicine shortages and potential health crisis in Afghanistan.
• 14:42 – Discussion of perishable medicines going to waste.
• 15:25 – Junaid Makhta and Kamran Nasir call for urgent resolution and possible international mediation.
• 19:02 – Farhat Javid outlines the deadlock and lack of talks for reopening the border.

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Tone & Language

The tone is urgent, empathetic, and deeply concerned, consistent with the serious humanitarian and business risks involved. The speakers express frustration at political impasses, personal distress over lost livelihoods, and a strong plea for external intervention and compassion, particularly for the most vulnerable.

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Summary

This episode powerfully conveys the interconnectedness of trade, politics, and human well-being in South and Central Asia. The Pakistan-Afghanistan border closure is not just a news headline—it is a crisis shaking families, businesses, and entire regional economies, with consequences that could last long after the diplomatic stalemate ends. The call is clear: a resolution is not just necessary for commerce, but for lives hanging in the balance.

Transcript

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[Kamran Nasir]

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[Will Bain]

Hello and welcome to Business Daily on the BBC World Service. With me, Will Bain. Today, miles of trucks, rotting fruit and vital medicines going to waste Pakistan and Afghanistan's sporadic fighting has caused a trade freeze.

[Farhat Javid]

It is more than a crossing point, it's sort of a lifeline for traders on both sides.

[Will Bain]

With the border now closed between the neighbors for two months, we'll hear how that's affecting companies right across the region.

[Junaid Makhta]

I mean the need of the resolution is need of the hour right now.

[Will Bain]

Immediately and a warning. The vital goods are already going to.

[Kamran Nasir]

Waste, so majority of it will go to waste because there is a shelf life and there is a strict regime under which they have to be kept while being transported.

[Will Bain]

So today on Business Daily, camp businesses survive the Pakistan Afghanistan border closure. Men pick through the shell of a building in eastern Afghanistan, every floor visible as the entire outer wall has been blown away. One tells the Reuters news agency what he says happened.

[SAP Concur Representative]

There are no unfamiliar people or military personnel living here, only ordinary civilians. All the places that were targeted were private homes. Pakistan carried out a brutal attack, destroying civilian houses and causing casualties among the people. As you can see, this house is completely destroyed. It was a two story home that was demolished.

[Will Bain]

Sporadic clashes between Afghanistan and Pakistan have now been rolling since October and earlier this month the fragile ceasefire between the two South Asian neighbors gave way again. The BBC's Farhat Javid explains the background.

[Farhat Javid]

Pakistan and Afghanistan had clashes in the second week of October. Both countries accuse each other of the rise in militancy. Pakistan accuses Kabul of sheltering a Pakistani Taliban group which is also called TTP or Tehrika Taliban. Pakistan and Pakistan accuses Kabul of sheltering this group and let I think the group used their soil to plan attacks inside Pakistan. Now Kabul denies all these allegations. Pakistan has repeatedly asked the Taliban government in Afghanistan to control the group. And there have been quite a lot of back and forth between the two countries. And every time there is a terrorist attack, Pakistan points fingers at Kabul and Kabul always denies it. So in October, both the countries faced off each other and there were clashes on the border, not only in the northwestern where Durham border is located, but also in the southern province of Pakistan which borders Afghanistan. So there have been clashes, there have been casualties reported on both sides. And Afghanistan alleged that Pakistan did some aerial strikes inside Afghan territory which the Pakistani officials have not publicly acknowledged. So there has been these clashes and since then the border is closed. And this is not the first time. I mean in the past we have seen that every single time there are clashes on the border between the two countries. The first point that shuts down are the borders.

[Will Bain]

That is significant and not just for traders in the two countries. Many countries across the region are entirely landlocked. So if they try to get their goods to sea to trade around the world, they have just two options. The ports of southern Pakistan, the biggest of which is in Karachi, or use neighboring Iran. But with international sanctions on Iran still, that second route can become complicated and slow. And time is money. It means countries like Afghanistan, but also Tajikistan, Kyrgyzstan and Uzbekistan are all hugely reliant on getting their goods across that one 600 mile Afghan Pakistan border. And the fact they haven't been able to do so now for two months is already having a huge impact.

[Junaid Makhta]

As of today, 11,000 containers are struck in Pakistan.

[Will Bain]

Junaid Makhta is the president of the Pakistan Afghanistan Joint Chamber of Commerce and Industry.

[Junaid Makhta]

Under the normal conditions, the daily cross border movement was 500 transit containers, 750 export trucks daily and 620 trucks of Afghan imports plus Central Asian goods enter Pakistan daily. Out of these, 6,792 containers are halted exclusively at the Karachi terminal. 6,400 Afghan transit containers, 85 containers from Tajikistan and 307 containers from Uzbekistan. I would say that it is totally jammed now and how to open it? We are doing our best. We try our level best. We ask government please kindly segregate the trade from these other politics. But national security is the first and priority as far as our chamber is concerned as well. So we that keep on asking the other side of Afghanistan chapter, our partners that please talk to the Taliban government.

[Will Bain]

Well, our reporter Farhat Javid has visited the border many times, particularly one of those five crossing points at the town of Torkham. Based in the Khyber district of northern Pakistan. It is strategically vital as it sits on a main route between the Afghan capital, Kabul to its west, and the major Pakistani city of Peshawar to its east.

[Farhat Javid]

Durham is one of the biggest crossing points between Afghanistan and Pakistan. And not only trade happens here, but it's for the movement of people as well. Patients who come to Pakistan, students who come to Pakistan, or people who go to Afghanistan. So it's one of the main crossing points between the two countries. It is in the northwestern province of Pakistan and it sits high in the dry, rugged mountains between the two countries. We see like narrow roads that cut through steep cliffs and barren hills. This was not the first time I went to Turkham. I've been there previously as well. And most of the times there are long lines of trucks visible on most days. So it is more than a crossing point. It's sort of a lifeline for traders on both sides. And since October it has been closed. And that is why we have many people on the border in the surrounding areas who have really felt the blunt of this whole situation. We have met traders. One of them was a female trader and when I got to know of her, it's not very traditional in a conservative province like Khyber Pakhtunkhwa in Pakistan, where women could enter into businesses. But I was really surprised to see that a woman was not only that she herself was doing businesses, but she was also training other women. And she wasn't doing this business in Pakistan, inside this province, but she was actually doing cross border trade, which was very different for that part of the country. So I met this female trader in Peshawar and she shared with me how difficult it has become not only for her, but for many other women who are running home businesses, and especially those who were preparing products like processed food, which has a very short shelf life. And they are in a lot of trouble. Their businesses have collapsed. They have shut down their machines. So we met this woman and she told us more about how this trade closure has affected her. Here in Khyber Pakhtunkhwa, women already struggle to enter business. We train them, help them set up, and then suddenly the border closes and everything stops. This is not only about Afghanistan. Through Afghanistan, we reached markets in Central Asia too.

[Will Bain]

It's not just proving a nightmare for traders though, but for those carrying the trade. Miles and miles of parked trucks have formed at the border since its closure. These drivers told us what that wait has been like.

[Kamran Nasir]

Believe me, we don't even have enough money here to buy food. We have even sold diesel from the truck. When we call the broker, he says he himself has nothing. What are we supposed to do? Our demand to the authorities is that they open the border for us and create a route for us as soon as possible. It has been one month and 10 days now and we are still standing here. Standing with great difficulty. Our truck is loaded with 55 to 60 tons of weight. Secondly, there is tremendous pressure on the tyres and they have been ruined on top of that, for the drivers here, it is extremely hard. They don't even have money for their daily expenses. The vehicle going to spin Boldak is still standing here. Believe me. The expenses for each vehicle have reached 200,000 rupees. Besides that, we don't even know what else to do right now. I've even sold the diesel from my truck. 100 liters here, 150 liters there to cover the expenses.

[Will Bain]

You're listening to Business Daily on the BBC World Service.

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[Kamran Nasir]

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[Farhat Javid]

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[Will Bain]

I'm Will Bain and today we're looking at the impact of months long border closure between Afghanistan and Pakistan is having on businesses. Well, one of Pakistan's biggest exports to Afghanistan is pharmaceuticals medicines which are of course vital in a country that the United nations says is in critical need of medical supplies. Kamran Nasir is the chief executive of one of Pakistan's biggest pharmaceutical firms, AGP Pharma. He's also the vice chairman of the industry body, the Pakistan Pharmaceuticals Manufacturing Association.

[Kamran Nasir]

So certainly it is very significant. And if I have to give you a number of our overall export proceeds which are roughly close to about $500 million as we speak. So out of that $500 million, roughly $200 million comes from Afghanistan. So it remains a significant market with about 30% of our export market share.

[Will Bain]

Right, so this closure then that must be having a pretty significant impact already.

[Kamran Nasir]

Certainly there is a negative impact on the Pakistan pharmaceutical industry in terms of, you know, a lot of companies who are exporting to Afghanistan, they would lose their top line and bottom line revenues. So certainly there is an impact.

[Will Bain]

Are you seeing that already? And what is that impact? How is that impact manifesting itself? I mean, are people people laying people off? Are people what's happening?

[Kamran Nasir]

People generally are currently maintaining status quo. We have a team of about 125 people in Afghanistan, all Afghanis by origin. You know, we are one of the job creators in Afghanistan because all these people are Afghanis and they earn their livelihoods through us. So currently we haven't laid off the teams and everybody in Pakistan is still watching the situation very closely and anticipating that better sense would prevail and the situation would improve between the two countries because it is not in the interest of either one of the countries in Pakistan. Roughly the overall trade quantum to Afghanistan is $2 billion which is sent in PKR denominated quantum. So they benefit from a PKR level import. They don't have to spend dollars. Most of the time. I think only about 10% of this trade is dollarized, rest is all in park rupees. And that gives them significant edge in terms of managing their, you know, current account deficits and managing their economy because dollars for them are really precious. So this is the ground reality. And if I May add there is a huge number of patient flow that comes from Afghanistan to Pakistan for the treatment. So that population now would be suffering because they do not have access to a proper medical treatment in Pakistani hospitals. And obviously their market is about 80% with Pakistan origin medicines. So they already have shortages. This means that prices would soar, people would not get medicines on time and there can be a health crisis back in Afghanistan.

[Will Bain]

From your members perspective though as well, presumably some of them, you know, some drugs, some pharmaceuticals are perishable, aren't they? Presumably they've got stuff that's potentially going to go to waste here.

[Kamran Nasir]

So majority of it will go to waste because there is a shelf life and there is a strict regime under which they have to be kept while being transported. So these are medical goods so they need a specific temperature in which you have to keep them while they are waiting to be sold. So all this at the borders, it is all being risked not be usable if this situation continues for more time.

[Will Bain]

Junaid Makta, President of the Pakistan Afghanistan Joint Chamber of Commerce and Industry says international support from the likes of the United States or the British High Commission is needed now to try and help bring an end to the closures at the border. And that the situation he says is now urgent.

[Junaid Makhta]

I mean the need of the resolution is need of the hour right now, immediately. Lot of damages have taken place right now. We have already asked our government to please sit together. Therefore they give me the task to discuss with the Afghanistan side of your trade chapter. So trade is only the area where we can talk and discuss. But the other areas in already blocked. We are already in discussion on the zoom and all that. But the both the government are not discussing anything else. So now I would say that at least US or BHC or the other government use their good offices and support establish the war as well. Because you know the goods are already stuck up at the port as well. So I asked government, okay, this is first measure because you have declared the war, you close the border and now the goods which already been arrived in Karachi port are already stuck up at the port as well.

[Will Bain]

Kamran Nazir, vice chairman of the industry body, the Pakistan Pharmaceuticals Manufacturing association agrees on that need for urgency now in finding a resolution.

[Kamran Nasir]

So we are talking to government. We have given up request to the government and we understand the government's position also because they believe that it's not a big ask on which Afghanistan is not settling the dispute because you know it's a national security issue and we just want Afghanistan to cooperate on this matter as long as they cooperate. Because love between the two countries, at least as far as people to people association is concerned, it is in abundance. You know, we consider them as our brothers. We have shared a history. They have lived in Pakistan for a very long time, either as refugees or otherwise. Their businesses are spread out in Pakistan in many forms. So we want this situation for humanity's sake to be resolved as soon as possible. But at the same time, we are also cognizant of the fact that it has turned out to be a national security issue where both sides need to show a little flexibility and come out on a workable mechanism that is acceptable to both the parties.

[Will Bain]

I hear what you're saying about obviously national security coming first, but presumably at some point, maybe that point is right now, there becomes a real urgency for this from a business and economic perspective, certainly.

[Kamran Nasir]

So when you ask about business exigency, the business people in Pakistan, they tend to support the government in terms of their fair ask. So the government in return says that we understand that you would lose business. We will help you in exploring other markets. But generally in pharmaceutical industry, you cannot replicate the same quantum of business in a short time frame. So Pharma has a long gestation period. The time to market is significantly long. It takes two to three years to get products registered in other markets. So this would tend to be a permanent loss. So certainly there would be a business loss. Certainly no businessman in Pakistan would want to have such kind of business losses incurring because of this issue. But at the end of the day, when they bring the national security issue in front, which we see and which we hear, that's where we limit ourselves in terms of further asking. But you know, our request has been to the government that we would want this on compassionate ground, at least as far as medicines are concerned, because this is something which saves the lives of people from that point of view, if they can provide an acceptance to this part, that would be great.

[Will Bain]

So how much hope is there that a resolution can be found and when the BBC's Farhat Javid again, as we.

[Farhat Javid]

Speak now, currently there are no negotiations taking place. Pakistan insists that until unless Afghanistan takes some action against the militant groups which are allegedly residing inside Afghanistan, there won't be any peace talks or there won't be a restart of this trade. Afghanistan, on the other hand, says that they are not helping or support any militant group in their country. For the Afghan Taliban government, government who haven't been recognized by any, any country in the world. So they rely heavily on Pakistan and that is something that Pakistan is trying to use at this point and trying to pressure the Taliban government to take some action so the border could be open for further trade.

[Will Bain]

The BBC's Farhat Javid in Islamabad there bringing us just about to the end of this edition of Business Daily. The producer was Hannah Mullane, and remember to never miss an episode. Subscribe to our podcast, just search for BBC Business Daily.

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