Pakistan’s SCCI Warns Afghan Port Closures Causing Massive Losses, Threaten Regional Economic Crisis

Peshawar, Pakistan – The prolonged and indefinite closure of key border crossings with Afghanistan has precipitated a severe trade and liquidity crisis, inflicting massive financial losses on Pakistani traders and choking a vital economic artery for the region. Junaid Altaf, President of the Sarhad Chamber of Commerce and Industry (SCCI), issued a stark warning that the situation is unsustainable and rapidly devolving into a broader socio-economic emergency.

Addressing an urgent executive committee meeting of the SCCI, which he chaired, Altaf revealed that over 12,000 containers carrying goods destined for Afghanistan and Central Asian transit trade are currently stranded at Karachi Port. This gridlock is forcing importers and exporters to bear crippling demurrage and detention charges, which are accruing daily from foreign shipping lines.

“The financial strain has exhausted the liquidity of our clearing agents and bonded carriers,” Altaf stated. “We are facing a domino effect where frozen assets and relentless charges are pushing businesses to the brink.”

The meeting, attended by senior office-bearers, executive committee members, traders, industrialists, importers, and exporters, unanimously expressed grave concern over the multi-faceted impact of the shutdown. Participants detailed a cascade of negative consequences:

• Perishable Trade Ruined: Exports of perishable goods like fruits, vegetables, and fresh food have been completely disrupted, resulting in total losses for those sectors.

• Rising Unemployment: Thousands of jobs linked to logistics, transportation, and border trade have been jeopardized, with unemployment spiking in trade-dependent communities.

• Humanitarian and Social Strain: Communities along the Durand Line, whose livelihoods are intricately tied to cross-border commerce, are facing severe socio-economic hardship.

• Capital Frozen: Stakeholders estimate that millions of dollars are being lost daily in detention fees alone, while billions of rupees remain blocked in bank guarantees and container security deposits, paralyzing business capital.

While the SCCI executive committee firmly acknowledged the gravity of internal and external security challenges, affirming there could be “no compromise on national security and peace,” it stressed that sustained closure is not a solution. The forum emphasized that reopening trade routes is crucial for regional economic stability, growth, and the survival of industrial and commercial activities.

Chamber Advocates for Diplomatic and Institutional Solutions

The SCCI urgently called on authorities in both Pakistan and Afghanistan to prioritize the issue and engage in immediate, sincere dialogue to find a sustainable resolution. This appeal aligns with a recent institutional move by Pakistan’s apex trade body.

In a direct response to the crisis, the Federation of Chambers of Commerce and Industry (FPCCI) has announced the formation of a high-level “Pakistan–Afghanistan Border Management Committee.” This committee, outlined in a letter issued this week, is tasked with overseeing coordination, fostering dialogue, and proposing practical steps to facilitate bilateral and transit trade.

Comprising seven named Pakistani business leaders, the committee will review persistent border management challenges and recommend workable solutions. Its mandate includes maintaining close contact with relevant Pakistani authorities, Afghan chambers of commerce, and other stakeholders to ensure smoother coordination and de-escalation of tensions.

Background and Broader Implications

Trade between Afghanistan and Pakistan has remained suspended since October 11 of last year, following deadly clashes between Taliban and Pakistani security forces. The Pakistan–Afghanistan border serves as a critical economic lifeline, supporting not only major traders and transporters but also thousands of border-based families dependent on daily small-scale commerce.

Analysts point out that previous closures have demonstrated how quickly political tensions translate into economic distress, driving up prices, causing shortages, and devastating small and medium-sized enterprises on both sides. The success of the newly formed FPCCI committee, observers caution, is contingent upon reciprocal cooperation from Afghan authorities. Without meaningful engagement from Kabul, efforts to restore trade stability and alleviate the mounting losses will face significant hurdles.

As the standoff continues, the business community’s message is clear: while security imperatives are paramount, a lasting solution must be forged at the negotiating table to prevent a manageable dispute from spiraling into a full-blown regional economic crisis.

 

 

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