Pakistan's land route exports of cement to Afghanistan have been halted since mid-October due to escalating tensions between the two governments. No import or export has occurred since then. The All Pakistan Cement Manufacturers Association (APCMA) and cement exporters based in the northern regions have not yet commented on the situation. However, a southern-based exporter indicated that this issue is likely to affect other market participants.
Currently, export data to Afghanistan is not available on the APCMA website. Still, previous figures show that Pakistan's cement exports have ranged between 1.5-2.5Mt in recent years.
In a related matter, DG Khan Cement Co Ltd (DGKC) highlighted that border closures with Afghanistan have disrupted coal supplies, prompting it to shift to imported coal.
Additionally, Pakistan has reiterated that trade with Afghanistan will not resume until Kabul takes significant measures to prevent cross-border terrorist infiltration and dismantle terrorist hideouts. The Federal Minister for Commerce emphasised during the inauguration of FoodAg 2025 in Karachi that, while Pakistan will bear trade losses, it will not compromise the safety of its citizens and security forces. He stated that Kabul must halt cross-border terrorist activities and that Pakistan is prepared to reopen trade routes if co-operation is extended in both letter and spirit.
It is important to note that the trade and import halt between Pakistan and Afghanistan is causing significant losses for both countries, exceeding PKR1bn (US$3.54m) per day. The closure of key border crossings, including Torkham and Chaman, has stranded hundreds of containers and disrupted supply chains.
The suspension of cement exports to Afghanistan is impacting its construction industry. Efforts to resolve the situation have included two rounds of talks held in Qatar and Türkiye, but these discussions were unsuccessful. Recently, Russia and Iran have offered to mediate discussions aimed at achieving peace and prosperity in the region. Additionally, the Pakistan-Afghanistan Joint Chamber of Commerce and Industry has urged the government to intervene and resolve the trade impasse.
by Abdul Rab Siddiqi, Pakistan
