Border closure for three months cripples Pakistan’s $200m medicine exports

Pakistan – Afghanistan – (Web Desk) – Pakistan’s medicine exports to one of its largest markets, Afghanistan, have been severely affected due to the longest-ever suspension of land trade, triggered by worsening security along the Durand Line.

Afghanistan accounts for $150 million to $200 million in Pakistan’s medicine exports, roughly 35% of the country’s total pharmaceutical exports globally, according to the Pakistan Pharmaceutical Manufacturers Association (PPMA).

Speaking to Business Recorder, PPMA’s former chairman Dr. Kaiser Waheed said the Torkham and Chaman borders have been closed for about three months, since October 2025. “This has caused trucks carrying medicines to remain stuck at the borders, resulting in major financial losses and disrupting cash flows for domestic pharmaceutical companies,” he explained.

Report by BBC shows how Afghanistan is now flooded with fake medicine after Pakistan’s decision regarding closure of Pakistan-Afghanistan International Border which is creating a huge health crisis inside Afghanistan.

Its noteworthy that State of Pakistan has decided that there… pic.twitter.com/o3KiVReFGf

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Dr. Waheed added, “It’s not just a temporary setback – Pakistan has effectively lost the market. This raises serious concerns about whether the country can maintain its export growth and reach $1 billion in pharmaceutical sales abroad in the current fiscal year 2025-26.”

He noted that if exports had continued without interruption, Pakistan could have achieved the $1 billion mark. The figures would have been even higher if exports of medical devices, surgical instruments, nutraceuticals, and food supplements were included, he projected.

The former chief of the pharma association said Pakistan was exporting a whole range of medicines including for chronological illness and playing a big role in managing the healthcare system in the neighbouring country. It was exporting medicines for diabetes, hypertension, heart issues, depression, pain, cold, cough and fever, and more.

Waheed said Pakistan’s pharmaceutical exports growth hit a two-decade high in the fiscal year ended June 30, 2025, securing fifth position among the fastest-growing export categories in the country, with sales of locally produced medicines rising to $457 million in overseas markets in FY25.

The export of therapeutic goods – including pharmaceuticals, surgicals, food supplement, medical devices and nutraceuticals – came in at $909 million in FY25, just $91 million shy away from the $1 billion mark.

He argued that pharma exports remain a highly technical subject. It takes a firm about four to five years to get itself and its medicines registered in an export market.

“Losing the Afghanistan market means a serious setback in exports to us. It will be hard to find alternate markets immediately. It may take significant time, in case trade remains suspended going forward,” he said.

He estimated that Pakistan’s pharmaceutical exports in rupee terms would have have been much higher than the formal exports of $150 million to $200 million a year, as the government allows traders to purchase medicines from local markets for Afghanistan in addition to official trade between the two countries.

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“There are no official numbers available as to how big pharma export was in rupee terms. One can only guess it was three to four times of the official exports.”

He also said some pharma firms had established their offices and sales teams in Afghanistan for export purposes. The firms lost such infrastructure as well in the wake of the prolonged border closure.

He said some firms have managed to export medicines of nominal value via air, as there operates only a weekly flight between Islamabad and Kabul.

He also added that the closure of the border is understandable and that national security comes first.

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Now reports suggest Iran, India and Bangladesh are establishing contracts and supplying medicines in Afghanistan, as the prolonged absence of required medicines could create a health crisis in the landlocked state. Russian medicines may also hit the Afghanistan markets via Uzbekistan and Tajikistan, he said.