Business Recorder
ISLAMABAD: The country’s international trade is facing a dual shock as tensions with Afghanistan have already wiped out an estimated USD850 million in exports and transit earnings, while the US-Israel and Iran conflict threatens to cut a further USD600 million in exports to GCC markets, drive up logistics and energy costs, and undermine local production and global export competitiveness. This was revealed in the official document of the Ministry of Commerce, a copy of which is available with Business Recorder . The document regarding ‘Impact of Iran & Afghanistan conflicts on Pakistan’s International Trade’ noted that the conflict with Afghanistan has resulted into loss of USD850 million exports/transit earnings in seven months. READ ALSO: Pakistan’s trade deficit rises 23% to $28bn in July-March The ongoing confrontation between the US-Israel and Iran in the Mideast has evolved from a regional political dispute into a global economic crisis. The conflict has disrupted Pakistan trade with the GCC countries and made expensive to other regions due to rise in logistics cost. The crisis can potentially decrease Pakistan direct export to the GCC countries by USD0.6 billion in 3-6 months. The latter could destabilize Pakistan local production and global exports. At the same time, high energy prices will increase Pakistan import bill. Furthermore, the border trade situation with neighboring countries is already strained due to war with Afghanistan, it added. Regarding the current state of land & air logistics in CARS, the document noted that Afghan border closed since 11th October 2025. All trade with Afghanistan and with countries in the region via Afghan corridor stopped. More than 7,500 transit containers got stranded at sea ports and BCPs with Afghanistan. Trucks carrying bilateral and transit cargo still stuck on both sides of the border, resulting in losses to traders of fruits, vegetables on both sides. Pakistan lost exports of pharma, cement, processed food, tractors, motorcycles, etc. Losses incurred by transporters on both sides. Pakistan transporters earns average USD 200 million from Afghanistan and CARS transit per annum, that has stopped and efforts are under way to start CARS transit thru Iranian corridor, it noted. Regarding the ‘impact of Iran conflict on Pakistan’s Trade with GCC’ it noted that sea /air routes are severely disrupted specially via strait of Hurmuz/Transportation cost has increased. The direct impact on UAE logistics was severe, and on Pakistan, as 80 percent of Pakistan trade with GCC was thru Jebel Ali port. Most of the international shipping lines suspended operations between Pakistan and GCC in March but some have resumed operations in April. PNSC oil tankers are bringing petrol from KSA & UAE. PNSC’s small commercial vessel started operations from Karachi to Khorfakkan on 18th May, 2026.Air logistics has recovered in April 2026 after cancelations at 30 percent rate in March 2026. Copyright Business Recorder, 2026
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