The Pakistan-Afghanistan crisis and border closures are reshaping regional trade. India is capitalizing on the conflict by deepening economic ties and strategic engagement with Kabul.
Relations between Pakistan and Afghanistan have hit a historic low in recent months, after deadly cross-border clashes that left dozens of people killed.
Important trade routes like Torkham and Chaman have since been closed. This has crippled trade, spiked prices and deepened the rift.
The closure of Pakistan's border crossings with Afghanistan has also triggered a significant realignment in regional trade patterns, with India emerging as the primary beneficiary.
Pakistan-Afghanistan border crisis reshapes regional trade
The conflict between Pakistan and Afghanistan has seen trade between the two neighbors collapse by nearly half.
Bilateral commerce grew by 25% in the fiscal year 2024-25, reaching nearly $2 billion (€1.88 billion), according to multiple media reports in both countries.
But with the border closures and military tensions, that has fallen to around $1 billion, Khan Jan Alokozay, a board member of Afghanistan's Chamber of Commerce, told Amu TV.
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