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Afghanistan and Pakistan agree to enhance bilateral trade ties 

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Pakistan and Afghanistan have agreed to enhance bilateral trade relations and the two countries will start cross-border passenger bus services next month.

The Pakistani embassy in Kabul said Wednesday that the two countries have also decided to facilitate issuance of visas, make border crossing points more efficient to ensure early clearance of trade and transit traffic, and address the bottlenecks and impediments on priority basis.

The embassy said that all possible efforts are being made to start a passenger bus service between Peshawar and Jalalabad, and Quetta and Kandahar by the end of next month.

“It was agreed that at the end of August 2022, passenger bus services will be started as a test, initially using two modern and well-equipped buses from both sides. After 15 days, it will increase to 5 buses from each side. After a month, both sides will comprehensively examine the bus services to determine how many buses are needed from each side,” said the Islamic Emirate of Afghanistan.

The two countries agreed to implement a Temporary Admission Document (TAD), allowing free movement of bilateral trade vehicles and preventing loading and unloading of goods at the border crossing points, besides increasing operational timings at all crossing points, particularly Torkham, Kharlachi (Kurram tribal district), Ghulam Khan (North Waziristan) and Chaman/Spin Boldak.

The embassy further said that during the current financial year, bilateral trade and transit has registered growth, adding that this momentum needs to be sustained and further strengthened on a mutually beneficial basis.

The volume of total trade between the two countries in 2021-22 was $1.55 billion. Afghan exports were $834 million, while Pakistan’s exports stood at around $750 million, the Friday times reported. 

According to Islamic Emirate of Afghanistan (IEA), during the negotiations, the Pakistani side assured that there is no restriction on the export of Afghan goods from all ports, including the route of Wagah port to India and other countries.

“It was agreed that a tripartite meeting between Afghanistan, Pakistan and Uzbekistan on regional connectivity will be held at the appropriate time,” said Zaibullah Mujahid, in a statement to the media. 

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Russia eyes trans-Afghan railway to expand regional trade corridors

Uzbekistan, which already has a direct rail connection with Afghanistan, has positioned itself as a regional logistics hub linking Russia, Central Asia and South Asia.

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Russia has expressed strong interest in constructing a railway through Afghanistan as part of broader efforts to strengthen transport and trade links with countries in the Global South, Russian Deputy Prime Minister Alexei Overchuk said.

Speaking to Russia 24 television, Overchuk noted that expanding connectivity with southern markets would help diversify Russia’s transport and logistics routes. He said various options for building a railway across Afghan territory are currently under discussion, with a focus on both western and eastern corridors.

Overchuk added that Russian specialists are actively studying the feasibility of the project and are involved in technical consultations related to the proposed railway.

His remarks follow earlier statements by Russian Industry and Trade Minister Denis Manturov, who said last year that Russia and Uzbekistan were jointly preparing a feasibility study for the Trans-Afghan railway, aimed at developing international transport corridors.

Subsequently, the transport ministers of Russia and Uzbekistan signed agreements to move into the development phase of the Trans-Afghan railway project, which is expected to extend southward to Pakistan.

Uzbekistan, which already has a direct rail connection with Afghanistan, has positioned itself as a regional logistics hub linking Russia, Central Asia and South Asia.

In November 2024, during a visit to Kabul, Overchuk told officials of the Islamic Emirate that Moscow was keen to participate in the Trans-Afghan railway project, describing it as a key initiative to enhance connectivity across Central Asia and the broader Eurasian region.

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Pakistan’s kinno exports falter as tensions with Afghanistan continue

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Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.

Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.

Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.

Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.

Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.

Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.

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Pezeshkian pledges to facilitate Iran-Afghanistan trade

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Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.

He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.

Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.

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