PABC to build US$110M beverage can plant in Afghanistan despite border tensions
PABC announces a major investment in Afghanistan as regional trade disruptions continue to pressure cross-border operations.
AFGHANISTAN – Pakistan Aluminium Beverage Cans Limited (PABC) has unveiled plans to establish a US$110 million beverage can manufacturing plant in Afghanistan, marking a significant step in the company’s regional expansion strategy.
The proposed facility, which is awaiting regulatory clearance, is expected to produce 1.3 billion cans annually and contribute to strengthening supply chains across the region.
The announcement comes at a time when relations between Pakistan and Afghanistan have deteriorated following Islamabad’s call for the Afghan Taliban administration to address militant groups accused of orchestrating attacks inside Pakistan.
In the aftermath, both countries have intermittently closed several border crossings, disrupting trade and affecting the movement of goods. These closures have raised concerns among businesses with operations in the region.
In October, PABC warned that the extended shutdown of Pak-Afghan border routes could affect its sales, noting that interruptions to key regional corridors may impact its business activities in Afghanistan and parts of Central Asia.
The company emphasized that the new Afghan facility forms a core part of its long-term strategy to expand production capacity and reinforce its footprint in regional markets.
Alongside the plant announcement, PABC has approved the acquisition of a 60 percent stake in Alfalah Agri-Cultivation Fund – I from Liberty Mills for Rs 621 million.
The fund focuses on mechanized and sustainable agricultural ventures aimed at improving food security and supporting export-oriented initiatives.
The company stated that the acquisition aligns with its broader diversification efforts and enhances its participation in Pakistan’s agricultural sector.
Industry observers note that PABC’s expansion plans could help cushion potential sales pressures linked to ongoing border challenges. The company reiterated its commitment to growth and cooperation within the region, despite the geopolitical uncertainties shaping current trade dynamics.
PABC’s board has authorized designated representatives to complete all required procedures for the Afghan project.
Once operational, the plant is expected to support industrial activity in Afghanistan, create employment opportunities, and supply beverage companies in Afghanistan and neighboring markets.
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