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IEA orders ministries to prioritize ‘generation of power through coal’

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The Islamic Emirate of Afghanistan’s (IEA) Economic Commission, chaired by Deputy Prime Minister Mullah Abdul Ghani Baradar, on Sunday gave orders for various ministries to prioritize projects to generate electricity by using coal.

In a statement, the commission said after “extensive discussions on all issues that the private sector is prepared to invest in” it was decided that the generation of electricity should be a priority.

According to the statement, the commission instructed the Ministry of Mines and Petroleum; the Ministry of Trade and Industry; the Chamber of Industry and Mines; as well as the Chamber of Commerce and Investment, under the leadership of the Ministry of Energy and Water, to generate electricity from coal for industrial parks, and large cities among other sectors.

The commission also ordered the relevant bodies to “set priorities according to the volume of coal and the need for electricity, and then start working on it”.

Afghanistan currently generates over 600 megawatts (MW) of electricity from several hydroelectric plants as well as using fossil fuel and solar panels. However, an addition 670 MW is imported from neighboring Iran, Uzbekistan, Tajikistan and Turkmenistan but holds 73 million tons of proven coal reserves as of 2016, ranking 62nd in the world.

However, estimates put the total reserves at between 100 million and 400 million tons.

A shortage of power has plagued Afghanistan for decades despite having ample hydropower, coal and fossil fuel resources.

But one successful private partnership has been through Bayat Power, Afghanistan’s largest, Afghan-owned and operated Power Production Company which has the region’s most technologically advanced gas fired electric power plant.

Launched in 2019, this commercial operation provides reliable and affordable electric power to thousands of people in Afghanistan.

Located in Sherberghan, in the north of the country, the epicenter of the nation’s gas-rich region, Bayat Power has steadfastly aimed to provide essential power for Afghanistan’s economic growth.

Powered by a Siemens SGT-A45 ‘Fast Power’ turbine, the world’s most advanced mobile gas to energy power solution, phase one of Bayat Power-1’s operations generates up to 41 megawatts of power for Afghan homes and businesses.

Bayat Power hopes however to eventually roll out three phases in total, that will generate more than 200 megawatts of electricity – enough to serve millions of Afghan residential and commercial clients.

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Uzbek exploration company launches energy survey project in Afghanistan

The new seismic survey marks the second major energy exploration initiative by Uzbek companies in Afghanistan in recent years.

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An exploration company backed by the government of Uzbekistan has begun collecting seismic data in northern Afghanistan as part of a new energy exploration project agreed between the two neighboring countries last year.

According to Uzbekistan’s Ministry of Mining Industry and Geology of Uzbekistan, the Uzbek Overseas Geology Company (UOGC) has started work to gather 2D seismic data across three exploration blocks in northern Afghanistan: Ahmadabad, Muhammad-Jandagar, and Shamar.

The three blocks cover more than 7,600 square kilometers near Afghanistan’s border with Tajikistan. Initial seismic surveys are expected to focus on about 600 square kilometers of the area.

Officials say the project will be fully financed by UOGC and aims to identify potential hydrocarbon reserves, while also assessing the area for other mineral resources, including iron and copper deposits.

The exploration work follows a cooperation agreement signed in 2025 between Uzbekistan’s mining ministry and Afghanistan’s Ministry of Mines and Petroleum of Afghanistan. Under the deal, the Uzbek side has two years of exclusive exploration rights in the blocks.

If commercially viable resources are discovered, Afghan authorities have agreed to give priority development rights to an operating company formed by the Uzbek partners.

The Uzbek Overseas Geology Company was established in early 2025 by two state-linked Uzbek exploration firms, Uzbekgeologorazvedka and Uzbekgeofizika, the latter being affiliated with Uzbekistan’s state energy producer Uzbekneftegaz.

Growing Uzbek energy involvement in Afghanistan

The new seismic survey marks the second major energy exploration initiative by Uzbek companies in Afghanistan in recent years.

In 2024, authorities in Tashkent announced that Eriell KAM—a joint venture between Uzbekistan’s oilfield service provider Eriell Group and Afghanistan’s Kam Group—had taken over exploration plans for the Totimaidan gas block.

The Totimaidan block is located in Faryab Province near the border with Turkmenistan and spans roughly 7,000 square kilometers. The area is believed to contain the undeveloped Juma and Bashikurd sour gas fields, according to energy consultancy Wood Mackenzie.

Although Afghanistan originally auctioned the block in 2014, a production-sharing contract was never finalized.

Regional cooperation and economic integration

Analysts say Uzbekistan’s growing involvement in Afghanistan’s resource sector reflects both geographic proximity and broader regional economic interests.

Tashkent-based investment consultant Farkhodjon Israilov said exploration projects in Afghanistan are not only about energy resources but also about encouraging infrastructure development and economic activity in the country.

According to Israilov, greater regional investment and economic integration could contribute to long-term stability and mutually beneficial growth for Afghanistan and its neighbors.

Uzbek officials say the seismic surveys represent an important step toward identifying Afghanistan’s untapped natural resources while expanding energy cooperation between the two countries.

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UNHCR launches largest carpet-weaving centre in western Afghanistan

Over the past year, some 2 million Afghans have returned from Iran, highlighting the urgent need for economic opportunities, especially for women, said UNHCR.

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The UNHCR, in collaboration with the Islamic Development Bank, on Wednesday inaugurated the largest carpet-weaving center in western Afghanistan’s Herat province.

The initiative, attended by UN Deputy Special Representative Indrika Ratwatte and local community leaders, will support 400 returnees, with more than three-quarters of them women, providing livelihoods and skills training.

The centre aims to empower returnees and host communities, helping them rebuild sustainable livelihoods, a priority need identified by Afghans returning from Iran.

Over the past year, some 2 million Afghans have returned from Iran, highlighting the urgent need for economic opportunities, especially for women, said UNHCR.

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Uzbekistan ratifies preferential trade agreement with Afghanistan

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Uzbekistan’s President Shavkat Mirziyoyev has officially ratified the Preferential Trade Agreement (PTA) between Uzbekistan and Afghanistan.

The agreement was first signed on 10 June 2025 during the Tashkent International Investment Forum by Uzbekistan’s Minister of Investment and Foreign Trade Laziz Kudratov and Afghanistan’s Minister Nuriddin Azizi, Uzbekistan Daily reported.

The PTA eliminates tariffs on 14 categories of goods, simplifies the issuance of phytosanitary permits for Afghan agricultural products, and introduces additional support measures for Uzbek exporters.

In February 2026, Uzbekistan’s Deputy Prime Minister Jamshid Khodjaev held online talks with Azizi to accelerate the agreement’s entry into force, advance investment projects, and promote industrial cooperation. A new joint business forum is planned to take place in Kabul after the conclusion of Ramadan.

The agreement is expected to strengthen bilateral trade, boost economic ties, and create new opportunities for Afghan businesses and exporters.

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