Business
First phase of Afghan-Uzbek free trade zone completed
Officials from Uzbekistan said the first phase of the free trade zone complex on the border between Afghanistan and its northern neighbor has been completed and shops are now being distributed to traders from both countries.
According to the officials, the final phase of the complex will be finished by next year.
“This plan was created to expand business relations and create jobs for Afghans and the people of Uzbekistan. In this market, along with Uzbek traders, Afghan traders and entrepreneurs can also start their work and activities. We are committed to completing the remaining parts of this market soon,” said the deputy head of the Afghan-Uzbek trade zone.
He said once complete, the complex will have 4,000 shops, health centers, guesthouses and restaurants where citizens of both countries can shop for ten days without a visa.
“More than four thousand shops, health centers, restaurants and guesthouses will be built in this market. Afghan citizens can shop in this market for ten days without needing a visa.”
Balkh Chamber of Commerce and Investment officials and traders say that the establishment of this market can provide a platform to showcase the country’s domestic products and expand the economic activities of traders.
“As a country on the verge of economic growth, the demand of Afghans is to create facilities and charge less rent so that they can get better benefits at first,” said Asadullah Asadi, head of Balkh Chamber of Commerce and Investment.
“If the common market is activated and our traders and businessmen open shops there and our handicrafts and national products go there, it will be a very good market for us,” said Haji Qalandar, an Afghan trader.
In August last year, Balkh provincial officials said plans were underway to establish the trade zone – which would be situated along the border area of Balkh province and Surkhandarya province of Uzbekistan.
Officials said 120 acres of land would be utilized and the cost would be $75 million.
Ariana Afghan Airlines has announced a reduction in cargo service rates on the Kabul–Delhi route as part of efforts to support Afghanistan’s trade and export sector.
The airline said the new cargo rate has been set at $1.20 per kilogram, a move intended to make air freight more affordable and accessible for Afghan traders and exporters.
Bakht-ur-Rahman Sharafat, head of Ariana Afghan Airlines, said the decision is expected to play a significant role in increasing exports of domestic products and strengthening commercial activity between Afghanistan and India.
He added that Ariana will continue to introduce new measures in the future to improve its services and better meet the needs of its customers.
Thirteen trade and investment memorandums of understanding (MoUs) worth more than $100 million were signed between private sector representatives of Afghanistan and Uzbekistan during a conference held in Kabul on Saturday.
The conference, which brought together business leaders and officials from both countries, focused on expanding bilateral economic cooperation, increasing trade volume, and identifying new investment opportunities.
Speaking at the event, Nooruddin Azizi, Minister of Industry and Commerce of Afghanistan, said economic relations between Afghanistan and Uzbekistan have gained notable momentum in recent months. He stressed that Afghanistan is actively working to strengthen regional trade ties and create a more favorable environment for investors.
Azizi added that Afghanistan offers significant investment potential, particularly due to its available workforce and emerging opportunities across multiple sectors, and is ready to welcome joint ventures with foreign partners.
Officials from the Ministry of Industry and Commerce of Afghanistan said the government has facilitated around $2 billion in investment across various sectors over the past year, reflecting growing investor interest in the country’s economy.
The Uzbek delegation also reiterated its commitment to expanding economic relations with Afghanistan, describing the agreements as an important step toward deeper regional cooperation.
Amanbay Orynbayev, head of Uzbekistan’s Karakalpakstan delegation, said his country places strong emphasis on long-term, transparent, and reliable economic partnerships. He encouraged Afghan traders to take advantage of joint investment opportunities to access new regional markets.
The Afghan private sector welcomed the agreements, expressing hope that increased trade engagement and business exchanges will further strengthen economic ties between the two neighboring countries.
Officials noted that the total value of agreements signed between Afghanistan and Uzbekistan has now exceeded $1.5 billion. If implemented effectively, these commitments are expected to contribute to increased trade flows and broader economic growth in Afghanistan.
A new multimodal freight corridor linking China and Afghanistan via Turkmenistan has been officially launched, aiming to improve the speed and efficiency of overland cargo transportation across Central Asia.
According to the Turkmenistan Embassy in London, the country has become part of a newly established route designed to accelerate freight deliveries between China and Afghanistan.
The corridor, developed with the involvement of Uzbekistan Railways’ subsidiary Uztemiryulcontainer, covers approximately 7,400 kilometers and is expected to reduce transit time to around 30 days, improving overall logistics efficiency.
Under the new route, containers are transported by rail from China through the Altynkol station in Kazakhstan, continuing via Uzbekistan to a logistics hub in Bukhara. From there, cargo is transferred to road transport and moved across Turkmenistan before reaching Herat in Afghanistan.
Officials say the new system integrates rail and road networks into a unified logistics chain, making transport more predictable and efficient.
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