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Trade Halt Leaves Afghanistan's Economy in Dire Straits

12/9/2025

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Story summary
  • Peshawar's largest market in Pakistan, once home to Afghan-owned businesses, now has about 50% lower activity.
  • Pakistan suspended cross-border trade to punish the Taliban for harboring militants, leaving aid shipments to Afghanistan stuck at Pakistani ports.
  • The trade halt has lasted nearly two months and blocked about $2 billion in goods.
  • Afghanistan seeks alternatives as its economy suffers from aid cuts, earthquakes, and the return of over 2.5 million Afghans.