Pakistan Aluminium Beverage Cans Limited (PABC) has confirmed it is moving forward with plans to establish a major beverage can manufacturing facility in Afghanistan, even as cross-border trade between the two countries remains suspended.

In its latest annual report, the company highlighted that the Pakistan-Afghanistan border has remained closed since October 2025 due to security concerns linked to cross-border militancy and ongoing military operations. The prolonged shutdown has effectively disrupted trade flows with Afghanistan and onward markets in Central Asia.

PABC noted that a significant share of its exports either directly serves Afghan and Central Asian buyers or depends on transit routes passing through Afghanistan. The continued closure has therefore constrained export volumes and weakened the company’s regional competitiveness.

Despite these challenges, the company said it is continuing work on its previously announced expansion plan, which involves a $110 million investment in a new manufacturing plant in Afghanistan. The proposed facility is designed with an annual production capacity of approximately 1.3 billion beverage cans, signalling a long-term commitment to regional market growth.

The company also cautioned that broader geopolitical tensions — including conflicts in Gaza and instability across parts of the Middle East — could influence consumer sentiment toward multinational beverage brands, potentially affecting demand patterns for packaging manufacturers like PABC.

The move reflects a strategic effort to position production closer to emerging markets, even as political and security uncertainties continue to reshape regional trade dynamics.