Between Pakistan and Afghanistan, a Trade War With No End in Sight

Following deadly cross-border clashes, Pakistan and Afghanistan are engaged in a trade war that began roughly two months ago, severely impacting the livelihoods of millions. Pakistan has cut off cross-border trade with Afghanistan, aiming to pressure the Taliban to control militants attacking Pakistan from Afghan territory. This suspension has halted the flow of approximately $2 billion in goods, including essential items like coal, cement, and medicine. The trade disruption is affecting farmers, traders, and communities in both countries, with Afghan markets in Pakistan experiencing a significant decline in business. While Afghanistan seeks alternative trade routes, its economy, already weakened by aid cuts, earthquakes, and the return of refugees, heavily relies on access to Pakistan's large market and land routes to India.

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