Business
Uzbekistan-Afghanistan joint trade zone to be established
Officials in Balkh province said plans are underway to establish a trade zone within two months in the border area of Balkh province and Surhandarya province of Uzbekistan.
Officials said 120 acres of land would be utilized and the cost would be $75 million.
The plan to create a joint trade zone was signed between Afghanistan and Uzbekistan last year in order to expand economic relations and support Afghan businessmen.
Uzbek officials involved in the Afghan-Uzbek joint trade zone, said: “Under the guidance of our president and understanding with the Afghan government, we are trying to establish a joint trade zone between the border of the two countries in order to increase economic relations, increase imports and exports between the two countries. And also to provide the introduction of Afghanistan’s domestic products abroad.”
The trade zone will ultimately allow Afghan business owners to network and trade without visas. Afghan products will also be available to Uzbek traders.
A number of businessmen in Balkh province consider the establishment of this zone as a window of hope for the country’s economy.
“The establishment of this market is good for both countries, it will continue to promote the business of businessmen of the two countries, and the relations between the two neighbors will continue to improve with the establishment of this zone,” said Miwand Ziyai, an investor.
“I am very happy that a joint trade zone is being established and this shows the good relations between the neighboring countries and we are trying to develop these relations because the creation of this zone is good for the national businesses of both countries,” said Afzal Daulatzai, another investor.
“Economically, it plays an important and fundamental role in the field of trade, and we can sell the products we have in this market. Wherever economic activity takes place, it is natural that its benefit reaches both countries, people and economy,” said Sultan Mohammad Tokhi, a resident of Balkh Province.
Local officials in Balkh also say that the creation of a joint trade zone will lead to the development of trade between the two countries.
“A joint trade zone will be created between the border of Afghanistan and Uzbekistan, and this joint zone has good effects on culture, social communication and also in the economic sector,” Zabihullah Noorani, said head of information and culture of Balkh.
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.
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.
A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.
According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.
He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.
Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.
The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.
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