The closure of the Pakistan-Afghanistan border has negatively impacted Khyber Pakhtunkhwa’s revenue, causing an estimated loss of nearly Rs2.5 billion during the first five months of the current financial year.

According to the Khyber Pakhtunkhwa government, collections under the Infrastructure Development Cess during the first five months stood at Rs2.95 billion, compared with Rs4.69 billion in the same period last year, marking a 37% decline in revenue.

Officials said the border closure led to a sharp fall in exports, which directly affected government income.

They added that legal challenges filed by traders against the infrastructure development cess, along with court-issued stay orders, further reduced collections.

In a recent ruling, the court decided in favour of the provincial government.

However, officials said traders still owe around Rs1.5 billion, which has yet to be recovered.

Authorities warned that revenue shortfalls could continue until the outstanding amount is fully collected.