# Afghan Car Trade Ceases Amid Escalating Regional Conflicts and Border Closures

*Afghanistan's once-thriving car trade has come to a standstill due to regional conflicts and border closures.*

July 6, 2026 · business

## At a glance

- Afghanistan's car trade has halted due to regional conflicts and border closures.
- The price of containers has increased from $2,000 to $8,000.
- Thousands of workers are affected, with many fearing job loss.
- The World Bank reports a widening gap between imports and exports.
- Businesses hope for a resolution to the conflicts to resume trade.

In Afghanistan's southern Kandahar province, the once-thriving business of trading car parts from far-flung places has screeched to a halt due to conflicts at the country's borders. The brakes were first put on the Spin Boldak market when cross-border violence with neighbouring Pakistan prompted the near-total closure of the frontier in October. Vehicle parts from Japan and elsewhere that used to reach Spin Boldak overland through Pakistan were rerouted through the United Arab Emirates, a longer and more costly path but one which at least allowed work to continue. But then the Middle East war broke out in February, which created very difficult problems for Afghanistan.

## Impact on Local Businesses

The conflicts have had a severe impact on local businesses. Asadullah, who imported from Dubai and Japan, said the conflicts have "paralysed business" for months. He noted that the price of each container shot up from about $2,000 to $8,000 after the outbreak of the Middle East war. Currently, he has more than 30 containers stuck in Japan and the UAE, largely because of hold-ups at Dubai's Jebel Ali port which serves as a key logistical hub.

## Economic Consequences

The World Bank in May described Afghanistan as "highly exposed to external shocks", with a "widening gap between imports and exports" that hit 70 percent of GDP in the 2025 fiscal year. The disruption has affected thousands of people who work at the Spin Boldak market, such as crane operator Mohammad Naeem, who said he'll have to leave this line of work and start to do something else if the situation does not improve.

## Workshops and Showrooms

In the dark workshops where cars would usually be built, men sat around while tools and wheels were idle. Samiullah, a 30-year-old workshop owner, said they used to make "five to seven cars per week" but work has stopped because there are no new parts arriving. At a car showroom at the market, owner Noor Ali was surrounded by a dozen colourful vehicles built with imported Japanese parts. "As few containers are coming to Spin Boldak, customers have decreased," he said, a month since he last sold a car.

## Hopes for Resolution

Businesses are now hoping for a resolution to the conflicts. Noor Ali, the car showroom owner, expressed hope that an agreement would be reached to fully open the Strait of Hormuz, allowing normal operations to resume. Until then, the car trade in Afghanistan remains at a standstill, with significant economic and social repercussions.

## Sources

- BSS

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Source: https://pulsetoday.com.bd/en/business/afghan-car-trade-halts-due-to-regional-wars