Tomatoes 5× costlier: How shutting Afghanistan border is hurting Pakistan
What's the story
Tomato prices in Pakistan have skyrocketed by nearly 400% this month, owing to a border shutdown with Afghanistan. The price surged to around 600 Pakistani rupees ($2.13) per kilogram. In some areas, prices even touched 700 rupees per kilogram. The closure came after violent clashes between the two countries on October 11 along their disputed 2,600-km frontier, which has led to a complete halt of movement of people and goods across the border.
Trade impact
Impact on Pakistan-Afghanistan trade
Fresh fruit, vegetables, minerals, medicine, wheat, rice, sugar, meat, and dairy goods account for the majority of the $2.3 billion in annual trade between the two countries. Pakistan relies on Afghanistan for fresh produce like tomatoes, onions, and apples, while Afghanistan depends on Pakistan for wheat, sugar, medicines and processed foods.
Ongoing negotiations
Traders' losses mount
Khan Jan Alokozay, head of the Pak-Afghan Chamber of Commerce in Kabul, told Reuters that both countries are losing around $1 million every day due to the closure. "We have around 500 containers of vegetables for export daily, all of which have spoiled," said Alokozay. Pakistani officials at the main Torkham crossing also confirmed that some 5,000 containers are stalled on both sides of the border.
Economic concerns
Economic implications for Pakistan
Economists have warned that a prolonged border closure could trigger inflationary pressure in Pakistan's fragile economy. The food inflation rate, which has been above 25% this year, may rise further if trade does not resume soon. A ceasefire was reached in talks hosted by Qatar and Turkey last weekend and is still in effect between the two countries, but border crossings remain restricted. The next round of negotiations will take place in Istanbul on October 25.
Clash
Accusations from both sides
Pakistan has long accused the Afghan Taliban of allowing the Pakistan Taliban, also known as the TTP, to operate from their territory and attack the Islamabad government in an effort to enforce a strict Islamic-led style of rule. The Afghan Taliban regime has consistently denied this. The latest confrontation erupted after Islamabad demanded that Kabul rein in rebels who had increased cross-border attacks in Pakistan, alleging that the fighters were operating from safe havens in Afghanistan.