Torkham Border Closure Caused Massive Trade Losses
The year-long shutdown disrupted supply chains and displaced thousands of logistics workers.
Updated on Oct. 12, 2026 in International Trade
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The Torkham border crossing between Pakistan and Afghanistan has remained closed since October 2026, creating severe economic strain. The stoppage has effectively halted regional trade and eliminated the primary source of income for thousands of local workers in Landi Kotal.
Why it matters
The ongoing suspension of trade, driven by political and security tensions, has crippled commercial throughput for regional operators. This disruption highlights the fragility of cross-border supply chains when geopolitical friction leads to long-term infrastructure shutdowns.
Estimated cumulative trade losses have reached between Rs380 billion and Rs400 billion. Daily impacts include $2.5 million in lost exports and Rs540 million in import-related revenue, while 5,500 taxi drivers and labourers in Landi Kotal have lost their primary livelihoods.
The players
Pakistan
A major South Asian economy with $32 billion in annual exports that is highly sensitive to cross-border logistics stability.
Afghanistan
A landlocked trading partner that relies on Pakistan for essential imports and transit, historically accounting for approximately $1.5 billion in annual trade.
The details
The closure of the Torkham crossing forced a complete cessation of commercial activities, including transport and service sectors that rely on cross-border traffic. Without this conduit, operators face significant cost increases as goods are diverted or stalled indefinitely. The ripple effects have hit local small businesses in Khyber Pakhtunkhwa particularly hard, as household incomes for logistics workers and laborers have effectively evaporated during the year-long tenure of the closure.
Timeline
October 2026: The Torkham border crossing was initially closed.
October 2027: The border closure officially reached the one-year mark.
Market Landscape
The Torkham closure follows a pattern of heightened security protocols that frequently disrupt regional transit corridors. The duration of this stoppage marks a significant departure from historical brief closures, effectively realigning regional supply routes through other crossings.
Operators reliant on trans-border movement in this region must account for the continued unreliability of the Torkham corridor in their logistics planning. Businesses should prioritize diversification of routes through secondary points like Chaman or Ghulam Khan to mitigate the risk of sudden, long-term closures.
The takeaway
The prolonged closure serves as a stark reminder that geopolitical risk is a primary variable in cross-border logistics cost structures. Business owners should maintain a current risk-assessment map that includes secondary and tertiary transport infrastructure to ensure operational continuity during border instability.
Further reading
For more on the operational risks facing global supply chains, see our section on International Trade.
Source note: This article includes information reported by Customs Today Newspaper.
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Should the government prioritize restoring cross-border trade over maintaining strict security-based closures in border regions?
