Pakistan’s economy is reeling from the extended shutdown of its border with Afghanistan, with Khyber Pakhtunkhwa bearing the brunt through a 53% revenue plunge. Trade suspension since October 2025 has crippled provincial finances, leading to desperate pleas for Islamabad’s action.
Dawn newspaper details the carnage in Infrastructure Development Cess (IDC) inflows: just 3.48 billion rupees gathered in the first seven months of this fiscal year, compared to 7.42 billion last year. This shortfall exacerbates fiscal woes in a region already strained by security challenges.
In a strongly worded letter, Finance Advisor Muzammil Aslam urged Commerce Minister Jam Kamal to convene an immediate high-level summit. Discussions will tackle revenue losses, exporter distress, payment snarls, and trade stagnation plaguing the province.
Aslam laid bare the toll: “Prolonged border issues are devastating our fiscal health, economic vitality, and job market.” A court injunction initially hampered collections, lifted in November, but border lockdown has thwarted all revival attempts.
Traders face catastrophe with shipments immobilized and dues unpaid across the divide. Legitimate business operations grind to a halt, unable to fulfill cess payments amid the chaos.
The closures trace back to fierce eight-day skirmishes between Pakistani troops and Taliban elements at key points like Torkham. Diplomatic parleys have yielded no breakthroughs, keeping gates firmly shut.
Public fury boiled over on January 4 in Landi Kotal, where a broad coalition rallied under the All Borders Coordinators Council. From merchants to laborers and elders, participants slammed the blockade as a death knell for tribal economies tethered to cross-border commerce.
“Torkham is our portal to Central Asia, feeding thousands of families,” orators proclaimed. With no end in sight, Pakistan must prioritize reopening to stanch the mounting losses and restore economic stability.