Ongoing security issues at Chaman negatively impact PABC’s financial stability

Pakistan Aluminum Beverage Cans Limited (PABC) has reported that the "ongoing security issues" in Chaman are likely to negatively impact its export revenue to Afghanistan, as trade with the neighbouring country has already been severely restricted. Additionally, the company has observed a nearly 25 per cent Y-o-Y decline in local order bookings. 

"We anticipate a negative impact on our order bookings during the peak season," the company stated.

Protests have been ongoing in Chaman since October 2023, involving workers and supporters from various political parties and local traders' organizations. These demonstrations have significantly disrupted bilateral trade between Pakistan and Afghanistan, including transit trade.

In October of last year, the government's apex committee decided to replace the existing system, which allowed individuals to cross the border using the Afghan national identity card or Tazkira, with a new system aligned with border-crossing regulations observed with other countries. As a result, having a valid passport and visa for crossing the border became mandatory.

Outcome of the decision

This decision was met with resistance from locals involved in trade on both sides of the border, who demanded a reversal of the new arrangements. Recently, Atif Ikram Sheikh, President of FPCCI, reported that the Chaman border had been closed, causing thousands of trucks and other vehicles to become stuck in vulnerable, uncertain, and hostile conditions. He called for the immediate reopening of the Chaman border to alleviate the suffering and financial losses of the traders.

Nestled in the heart of a tumultuous region, the Chaman border has long served as a crucial hub for cross-border trade between Pakistan and Afghanistan. This development arises as Pakistan continues to assert that terrorists have used Afghan soil to launch attacks within its territory. In May, Director General (DG) ISPR Major General Ahmed Sharif reported that terrorists operating from Afghanistan were involved in the March attack on Chinese engineers in Khyber Pakhtunkhwa.