Business
IMF, Afghanistan reach preliminary agreement over Extended Credit Facility
The International Monetary Fund (IMF) and the Afghanistan authorities have reached a preliminary agreement on an economic reform program to be supported by a new three-and-half year US$364 million Extended Credit Facility (ECF).
This announcement comes just three months before the United Nations’ donor pledging conference for Afghanistan gets underway.
In a statement issued by the IMF on Friday, the fund said the ECF will help mitigate the economic impact of the Covid-19 pandemic, maintain macroeconomic stability, and underpin reforms for economic resilience and good governance.
The fund also stated that continued financial assistance from international partners is critical to support objectives of Afghanistan’s National Peace and Development Framework for 2021-25, including inclusive growth, poverty reduction, and self-reliance.
Leading the IMF’s team was Azim Sadikov, and virtual discussions were held with Afghan officials through July and August on the country’s economic reform program.
Sadikov said however that the agreement is subject to the approval of the IMF’s Executive Board, which would possibly consider the agreement in October after preliminary conditions have been met by Afghan authorities, including the improvement of accountability and transparency in procurement processes.
“The new ECF arrangement will support authorities’ reform program to maintain macroeconomic stability and lay the ground for a sustained post-pandemic economic recovery while continuing to advance structural reforms,” Sadikov said.
He said the reform program aims to gradually reverse the fiscal decline due to the pandemic and instead create space for development sending while increasing self-reliance.
He stated improvements in customs collections and revenue administration need to be improved and the planned Value Added Tax (VAT) process needs to be implemented in 2022.
“Monetary policy will continue to focus on maintaining price stability and a flexible exchange rate regime, while fostering confidence in the Afghani,” Sadikov said.
He also said that reforms, in accordance with the new ECF arrangement, will focus on addressing issues that hamper economic growth and resilience.
“To that end, the program will aim to improve fiscal governance, strengthen the anti-corruption regime, and bolster the financial sector,” he said.
“Bolstering the financial sector, including by completing the reform of state-owned banks, will also be important to boost its capacity to contribute to growth.
“Coming before the November pledging conference, the ECF arrangement is expected to catalyze donor financing, which is critical to support Afghanistan’s reform and development objectives under the multi-year National Peace and Development Framework,” he said.
The pledging conference is organized every four years and was last held in 2016 in Brussels.
This year, Finland will host the conference, which will be organized by both the UN and Afghanistan.
Previous international financial commitments largely end by December of this year.
Business
Uzbekistan, Kazakhstan target Afghanistan in push to expand regional trade
According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent.
Uzbekistan and Kazakhstan are seeking to deepen economic cooperation and jointly expand into new regional markets, including Afghanistan, as part of broader efforts to strengthen trade and investment across Central Asia and the Middle East.
According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent, where business leaders and trade associations from both countries explored opportunities to promote their products in third-country markets, particularly Afghanistan, Syria and Iraq.
Afghanistan featured prominently in the discussions, with participants noting that Kazakhstan’s exports to Afghanistan reached nearly $500 million during the first seven months of 2025—almost matching the country’s total exports to Afghanistan for all of 2024. Officials said the long-term goal is to increase exports to $3 billion.
The forum also highlighted growing imports of mineral raw materials from Afghanistan. Participants discussed a proposed agreement to supply Afghan zinc ore to the Almalyk Mining and Metallurgical Complex in Uzbekistan.
Beyond Afghanistan, delegates examined emerging business opportunities in Syria and Iraq, where reconstruction efforts are expected to drive demand for food products, construction materials and industrial goods.
The forum also focused on improving regional logistics. Officials discussed using available capacity on Turkish freight trucks transiting Uzbekistan, a move expected to reduce transport costs and improve access to regional markets.
At the conclusion of the forum, both sides agreed to organise joint business missions to third-country markets, including Aleppo, Syria, in late September and Erbil, Iraq, in early October, with the aim of strengthening commercial partnerships and identifying new investment opportunities.
The discussions reflect growing economic cooperation between Uzbekistan and Kazakhstan as both countries seek to expand regional connectivity, diversify exports and strengthen trade links with neighbouring markets, including Afghanistan.
Business
Uzbekistan’s Fergana region strengthens economic ties with Afghanistan
The meeting followed a Fergana delegation’s visit to Afghanistan on July 26-27, during which officials and business representatives held talks in Kabul and Mazar-i-Sharif.
Uzbekistan’s Fergana region is moving to deepen economic cooperation with Afghanistan after officials and business leaders agreed to fast-track joint investment projects and expand bilateral trade.
According to a statement from the Fergana Regional Administration, Governor Khayrullo Bozorov met with leading Afghan business figures, including Emerald Diamond Trading Director Abdul Hamid Anyuri, Kam Air Director Atilla Azimi, Tojmahal Petroleum Director Abdul Latif Nawruzi, and their regional partners to discuss practical measures for strengthening economic ties.
The meeting followed a Fergana delegation’s visit to Afghanistan on July 26-27, during which officials and business representatives held talks in Kabul and Mazar-i-Sharif. The delegation also inaugurated Fergana Trade Houses in both cities to promote trade and commercial cooperation.
“The parties agreed to accelerate the implementation of joint investment projects, increase bilateral trade and elevate cooperation to a new level,” the regional administration said.
Discussions focused on turning agreements reached during the Afghanistan visit into practical projects, identifying new investment opportunities, and expanding trade between the two sides. Afghan business representatives expressed interest in working with Fergana companies in key sectors including trade, agriculture, aviation, energy and logistics, while presenting several new investment initiatives.
Bozorov reaffirmed Fergana’s commitment to strengthening economic relations with Afghanistan, saying the regional administration stands ready to support joint projects and create favourable conditions for closer business cooperation.
The regional administration said the meeting reflects growing momentum in economic engagement between Uzbekistan and Afghanistan, with both sides seeking to expand cross-border trade, attract investment and develop new commercial partnerships as part of broader efforts to strengthen regional economic connectivity.
Business
Afghanistan invites Iranian investors to expand economic cooperation
Discussions focused on expanding private-sector cooperation, increasing joint investment, and boosting bilateral trade between the two countries.
Afghanistan has invited Iranian investors to explore business opportunities and participate in joint economic projects as the country seeks to strengthen investment and trade ties with its western neighbor.
Kamaluddin Tawhidi, head of the Afghanistan-Iran Joint Chamber of Commerce, made the appeal during a visit to Iran, where he attended the “Economic Cooperation Opportunities with Afghanistan” conference in Alborz Province, according to Iran’s state broadcaster.
Speaking at the event, Tawhidi highlighted Afghanistan’s investment potential and encouraged Iranian businesses to take advantage of opportunities across a range of economic sectors.
Discussions focused on expanding private-sector cooperation, increasing joint investment, and boosting bilateral trade between the two countries.
Tawhidi said stronger economic partnerships could create new business opportunities and support broader regional economic growth.
The meeting comes as Afghanistan continues efforts to attract foreign investment and deepen economic cooperation with neighboring countries.
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