Business
Oxygen and cotton production factories worth $4 million open in Herat
An oxygen producing company and a cotton manufacturing facility, totaling $4 million, have opened in Herat’s Industrial City.
This comes after Islamic Emirate of Afghanistan (IEA) officials called for investors to open businesses in the country.
Herat Chamber of Industries and Mines say in the past four months, 20% of the factories have resumed operations and the necessary facilities have been provided to them to deal with customs and transportation. Currently there are about 200 factories in the city.
Officials from the new oxygen plant say they can produce 1,000 cylinders of gas a day.
“The conditions are ready for all investors inside and outside the country. Whenever they want to invest, now is the best time. Herat is ready and a very good platform for investment,” said Nooruddin Azizi, Acting Minister of Trade and Industry.
Hamidullah Khadem, head of the Herat Chamber of Industries and Mines, said: “Approximately $1.5 million is the value of the cotton factory and about $2.5 million has been invested by the oxygen production company, of which about four million dollars we are witnessing in the opening of these companies.”
However, factory owners have raised concerns about the amount of goods, similar to domestic products, that are imported into the country.
Herat factory owners say this is a problem for them and that they are manufacturing goods which are still being imported.
“We have a special program with neighboring countries on importing similar goods, but we will support our domestic production at any time,” said Azizi.
“Our production has improved and sales in the market have improved. At the moment, what has been done is that similar goods are being imported from neighboring countries,” said Ismail Sakhawat, a factory owner.
Meanwhile, a new industrial town covering an area of 5,000 acres is expected to be developed. The Ministry of Industry and Trade said the process of distributing lands to industrialists will begin next month.
Business
Uzbekistan launches new cargo corridor linking China and Afghanistan
From Uzbekistan, shipments will be transferred onto trucks and transported across Turkmenistan en route to Herat in western Afghanistan.
Uzbekistan’s national railway operator has announced the launch of a new multimodal freight route designed to strengthen logistics links between China and Afghanistan via Central Asia.
According to Trend news agency the new corridor will see container used goods transported by rail from China through Kazakhstan’s Altynkol station into Uzbekistan. Cargo will then be handled at the Bukhara logistics centre, operated by Uztemiryulkonteyner, before continuing its journey by road.
From Uzbekistan, shipments will be transferred onto trucks and transported across Turkmenistan en route to Herat in western Afghanistan.
Previously, freight along this trade corridor was largely routed via sea from China to Iran’s Bandar Abbas port, before continuing overland into Afghanistan. The new overland alternative is expected to streamline logistics and improve reliability.
Covering approximately 7,400 kilometres, the route is projected to reduce transit times to around 30 days, offering a more efficient option for regional cargo movement between East Asia and South Asia.
Business
Afghanistan presses Chinese contractor over delays in Mes Aynak copper project
During the meeting, the MCCT president assured that pending operations would be implemented in line with contractual provisions.
Afghanistan’s Minister of Mines and Petroleum Hedayatullah Badri has raised concerns over delays in the Mes Aynak copper project during a meeting with Chinese officials and company representatives.
The talks brought together the Chinese ambassador, the head of MCCT, and the chairman of MJAM, the contractor responsible for the major mining project. Discussions focused on the lack of progress and the failure to implement key obligations outlined in the mining contract.
Officials reviewed outstanding commitments that had previously been formally communicated to the company, with Afghan authorities stressing that agreed mining activities have yet to be carried out.
During the meeting, the MCCT president assured that pending operations would be implemented in line with contractual provisions.
Badri emphasized that the contractor must fully comply with all terms and conditions of the agreement, as well as follow the ministry’s formal directives. He called for concrete and immediate steps to accelerate the project and ensure full implementation of planned activities.
Mes Aynak copper project
The Mes Aynak copper deposit, located about 40 kilometres southeast of Kabul, is one of the world’s largest untapped copper reserves, with an estimated 11 million tonnes of copper.
The project was awarded to a Chinese consortium led by state-run Metallurgical Corporation of China in 2007 and formally signed in 2008 under a 30-year lease. Valued at roughly $3–4 billion, it was the largest foreign investment in Afghanistan at the time.
The agreement included plans to develop the mine along with major infrastructure such as railways, roads, and power facilities, although several of these commitments were later delayed or renegotiated.
Despite its scale, the project has seen little progress over the past decade. Work slowed significantly around 2013–2014, with ongoing delays attributed to security concerns, lack of infrastructure, and disputes over contractual terms. The presence of a significant archaeological site at Mes Aynak — containing ancient Buddhist remains — has also complicated development, requiring extensive preservation efforts.
Afghan authorities have repeatedly raised concerns over the contractor’s failure to meet key obligations and timelines, while Chinese companies have cited security and logistical challenges as major obstacles.
Since the political changes in Afghanistan in 2021, the project has repeatedly come under focus, with officials pushing to revive stalled mining initiatives as part of broader economic recovery efforts. Chinese firms have signaled continued interest, but meaningful progress has yet to materialize.
The project remains strategically important, with the potential to generate significant revenue, create jobs, and support Afghanistan’s long-term economic development — if longstanding challenges can be resolved.
Business
Kazakhstan grain exports to Afghanistan jump sharply
Shipments to Afghanistan reached 302,000 tons during the period, marking a 4.2-fold increase compared to the same timeframe last year.
Grain exports from Kazakhstan to Afghanistan surged more than fourfold in the first quarter of 2026, according to a report by Kazinform International News Agency.
Shipments to Afghanistan reached 302,000 tonnes during the period, marking a 4.2-fold increase compared to the same timeframe last year.
Kazakhstan’s overall grain exports also recorded solid growth, rising 18 percent to 3.2 million tonnes. Domestic grain shipments increased by 8 percent, totaling 0.9 million tonnes.
Looking ahead, Kazakhstan plans to expand its agricultural processing capacity, with new grain facilities expected to handle a combined 5.8 million tonnes annually by 2028.
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