Pakistan’s tightened transit restrictions are forcing Indian exporters to reroute shipments destined for Afghanistan through Dubai, significantly altering long-established regional trade corridors and increasing logistics costs for businesses serving the Afghan market.
The revised routing has emerged as a practical alternative following limitations on the movement of Indian goods through Pakistani territory. Exporters are now relying on Dubai as a transshipment hub, from where cargo is consolidated and forwarded to Afghanistan using multimodal transport networks.
The shift is expected to extend transit times and raise freight, warehousing, and handling costs due to the additional shipping leg and customs procedures. Sectors including pharmaceuticals, food products, textiles, engineering goods, and consumer merchandise are among those most affected, as Afghanistan remains an important export destination for Indian manufacturers.
Logistics providers have responded by expanding transshipment services through the UAE, leveraging Dubai’s well-established port infrastructure, warehousing facilities, and global connectivity. Freight forwarders are also exploring integrated sea-air and multimodal solutions to minimise delivery delays and maintain supply chain reliability.
Industry experts believe the rerouting highlights the vulnerability of regional trade to geopolitical developments and underscores the need for diversified transport corridors. Businesses are increasingly evaluating alternative logistics strategies to reduce dependence on a single transit route and improve supply chain resilience.
While the new routing through Dubai is expected to sustain trade flows between India and Afghanistan, it comes with higher operational costs that may ultimately affect exporters’ competitiveness. Nevertheless, the development reinforces Dubai’s growing role as a strategic logistics hub for South Asian and Central Asian trade, enabling continued market access despite evolving regional transit challenges.