New Delhi, Oct 23 — Pakistan’s pharmaceutical exports have been witnessing a steady decline in recent times, with the industry attributing the fall to trade disruptions with Afghanistan following the closure of its border for over a year now, say reports from Islamabad and Kabul.
Pakistan’s pharmaceutical exports fell 30.26 per cent in FY26 and declined a further 25.53 per cent in value during the first quarter of FY27, as industry representatives linked the downturn largely to the disruption of trade with Afghanistan, according to a report in Pakistan’s ‘The News’ on Thursday.
Kabul has been one of the country’s biggest markets for medicines, it added.
Quoting Pakistan Bureau of Statistics (PBS) data, the report put exports of pharmaceutical products at USD 319.012 million in FY26, down from USD 457.456 million in FY25.
The reduction was thus USD 138.444 million. Export volumes also fell 26.14 per cent, from 112,517 metric tonnes to 83,104 tonnes, a decrease of 29,413 tonnes.
The decline continued in July-September FY27; export earnings fell to USD 73.301 million from USD 98.428 million in the same quarter of FY26, a decrease of USD 25.127 million, or 25.53 per cent, the report added.
Exports of surgical goods and medical instruments were not included in the figures, it said.
Several other publications, like the ‘Business Reporter’, also cited Afghanistan being Pakistan's dominant pharmaceutical export market, where destination-wise figures were quoted as showing exports of USD 155.68 million to Afghanistan in FY25, equal to about 34.1 per cent of Pakistan’s USD 457.456 million in pharmaceutical exports that year.
Former chairperson of Pakistan Pharmaceutical Manufacturers Association (PPMA) Tauqeer ul Haq told ‘The News’ that suspension of trade with Afghanistan has caused major losses for the pharmaceutical industry and the national exchequer.
Afghan patients have also been affected, as they are being pushed towards more expensive medicines, he added.
The PPMA has reportedly “raised the issue with the government and that Federal Planning Minister Ahsan Iqbal has promised to take it up with the relevant authorities and explore ways to resume Pakistani medicine exports,” the report quoted Tauqeer ul Haq, who “deplored what he described as a lack of follow-up”.
Tensions between the neighbours have deep historical origins, primarily from disputes over the Durand Line that the then British rulers drew to define pre-1947 India’s border with Afghanistan.
Relations deteriorated after the Taliban regained control of Afghanistan in 2021, with Pakistan repeatedly accusing Kabul of harbouring militants who carry out attacks across the border, particularly the TTP and ISIS–K.
Afghanistan insists that it does not shelter such elements and blames Pakistan for holding it responsible for internal problems.
The Pak-Afghan border has remained closed since October 2025 following cross-border violence causing significant economic losses, with increased prices of goods, restricted medical travel, and adversely affected livelihoods on both sides of the border.
It also strained diplomatic relations and encouraged businesses to seek alternative regional trade routes.
For years, Afghanistan’s medical supply chain was heavily dependent on Pakistan, where Kabul remained vulnerable to political tensions and repeated disruptions. Lately, the country has turned towards alternative partners, demonstrating both resilience and a strategic shift in regional economic policy, added reports from Kabul.