Pakistan Medicine Exports Fall Sharply Amid Afghan Trade Halt
The value of Pakistan's pharmaceutical exports has fallen by more than 30 percent as the suspension of trade with Afghanistan continues to weigh on the sector. Figures show a 30.26 percent drop in fiscal year 2025-26, followed by a further 25.53 percent decline in the first quarter of fiscal year 2026-27.
Industry voices have pointed to the closure of trade routes with Afghanistan as the leading cause. Because Afghanistan has traditionally been one of the most significant destinations for Pakistani medicines, the blockage of border trade has translated into substantial losses for drug makers.
According to official statistics, pharmaceutical exports in fiscal year 2025-26 dropped to 31.90 crore dollars from 45.74 crore dollars in fiscal year 2024-25. This amounts to a reduction of 13.84 crore dollars.
The quantity of exports has fallen as well. Pakistan shipped 1,12,517 metric tonnes of pharmaceutical products in fiscal year 2024-25, a figure that shrank to 83,104 metric tonnes in fiscal year 2025-26. The decline of 29,413 metric tonnes represents a fall of 26.14 percent.
The decline has carried into the current financial year. Drug exports between July and September 2026 totalled 7.33 crore dollars, against 9.84 crore dollars during the same quarter of fiscal year 2025-26. That left export earnings lower by 2.51 crore dollars, or 25.53 percent.
These numbers do not cover surgical products or medical devices.
Additional reporting shows that Afghanistan purchased medicines worth 15.568 crore dollars from Pakistan in fiscal year 2024-25. That accounted for close to 34.1 percent of the country's total pharmaceutical exports, highlighting the market's importance to the industry.
Tauqeer ul Haq, former chairman of the Pakistan Pharmaceutical Manufacturers Association, said the trade suspension has hurt both the drug industry and the national treasury. He added that Afghan patients are feeling the consequences too, as they are increasingly compelled to purchase costlier alternatives.
The PPMA has placed the issue before the Pakistani government. Federal Minister for Planning Ahsan Iqbal assured the association that he would raise the matter with the relevant officials and look for ways to restart drug shipments to Afghanistan. Haq, however, criticised the absence of any follow-up action so far.
Historical disagreements remain at the heart of the rivalry. The Durand Line, drawn during British rule to define the border between British India and Afghanistan, continues to be a key dispute.
The relationship grew more strained after the Taliban came back to power in August 2021. Pakistan has consistently claimed that militant groups, including Tehreek-e-Taliban Pakistan (TTP) and Islamic State-Khorasan (ISIS-K), operate from Afghan territory and carry out cross-border strikes. Afghanistan rejects these accusations and holds Pakistan responsible for its own internal challenges.
The border has reportedly remained closed since October 2025 after cross-border violence. The shutdown has affected trade between the two nations, driven up prices of goods, restricted travel for medical treatment, and damaged local livelihoods. Diplomatic tensions have also intensified, and businesses are now exploring alternative regional trade corridors.
Reports from Kabul indicate that Afghanistan's medicine supply had depended to a large extent on Pakistan over a long period. Political tensions and repeated border closures have highlighted the risks of that reliance, and Afghanistan is now seeking other partners for its drug supplies. While this shift creates new challenges for Pakistan's pharmaceutical industry, it also reflects Afghanistan's effort to diversify its healthcare supply chain.