Restrictions on Pakistani currency at Chaman border impact cross-border trade

CHAMAN (UNA): New restrictions on Pakistani currency at the Chaman border are causing significant disruptions in trade. On one hand, a one-document passport regime has been introduced, while on the other, Afghan authorities have imposed a strict ban on the use of Pakistani currency within Afghan markets, including the border areas. Upon crossing the border, Afghan Taliban authorities have implemented three checkpoints where Pakistani currency is seized. Violators face a fine of 20,000 Afghanis and a 10-day jail sentence. Shopkeepers found conducting transactions in Pakistani currency face a similar fine and have their shops sealed for 20 days.
Sources report that currency exchange dealers have been set up at three locations just across the border, converting Pakistani currency to Afghan currency at self-determined rates. Although Pakistan allows travelers to carry up to 500,000 rupees, Afghan restrictions are severely affecting business. Due to the restrictions, some traders are resorting to smuggling Pakistani currency, raising concerns over the future of cross-border trade. Traders on both sides are appealing to the governments of Pakistan and Afghanistan to allow the use of multiple currencies at this international border to facilitate smoother transactions and support trade continuity.