PESHAWAR: The Khyber Pakhtunkhwa government has cautioned the federal authorities that the continued suspension of trade at the Pakistan-Afghanistan border is inflicting heavy revenue losses on the province and triggering job cuts across the commercial sector.
In a letter addressed to Federal Commerce Minister Jam Kamal, KP Adviser on Finance Muzzammil Aslam said cross-border trade had been “virtually paralysed,” worsening economic pressures at a time of slowing growth, falling exports and rising unemployment.
He said the province had recorded an “alarming” 80 per cent drop in collections of the Infrastructure Development Cess, a tax linked directly to border commerce. A report from the Khyber Pakhtunkhwa Revenue Authority was attached to the letter, outlining the sharp fall in receipts.
Aslam urged the federal government to convene a high-level meeting involving both federal and provincial stakeholders to review the revenue impact and address the difficulties being faced by traders and exporters.
The major crossings with Afghanistan have remained closed to routine trade and transit since October 10, 2025, following deadly clashes along the frontier and reports of Pakistani air strikes. Islamabad has said the escalation followed its demands for Kabul to take action against militants allegedly operating from Afghan territory — a claim denied by the Taliban authorities.
Although a ceasefire was discussed in talks facilitated by Qatar and Turkey and was said to be holding, trade has yet to resume, with both sides continuing to trade accusations.
In December, Pakistan allowed limited humanitarian shipments under a special exemption while keeping the wider border closed for commercial activity.
Officials from both countries have since agreed to form a 13-member joint committee to hold talks at Torkham in an effort to resolve border-management issues and restore cross-border trade.