PESHAWAR: The prolonged closure of the Pakistan–Afghanistan border and the suspension of cross-border trade and transit have caused Khyber Pakhtunkhwa (KP) an estimated financial loss of Rs4 billion, according to official sources.
The Khyber Pakhtunkhwa Revenue Authority (KPRA) reported a sharp decline in the collection of Infrastructure Development Cess (IDC) during the current fiscal year due to the disruption in border trade. As a result, the provincial government is facing a serious revenue shortfall, economic slowdown, and growing employment challenges.
In response to the worsening situation, the KP government has formally approached the federal government. In a written communication, the province highlighted the gravity of the losses and recommended convening a high-level meeting involving both federal and provincial stakeholders to address the issue.
Official figures show that during the first seven months of the previous fiscal year (July to January 2024–25), total IDC revenue stood at Rs7.42 billion—approximately Rs4 billion below the projected target.
The continued border closure has significantly affected trade activity, local businesses, and government revenues, raising concerns over its long-term economic impact on the province.
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