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Afghanistan exports up by 7% in first quarter of 2023: World Bank

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Exports from Afghanistan increased by seven percent in the first quarter of 2023, the World Bank said in a new report released Tuesday.

Based on unofficial Afghanistan customs data, exports in the first quarter of 2023 reached US$ 0.5 billion, with a 7 percent growth compared to Q1-2022, the report said.

As food exports remain stable, the increase can be attributed primarily to coal (by 26 percent) and textiles by 28 percent.

During Q1-2023, Pakistan remained Afghanistan’s largest export market (accounting for 60 percent of total exports), followed by India (24 percent).

Exports to Pakistan are mainly food and coal, contributing around 72 percent of total exports in Q1–2023. Coal exports to Pakistan reached US$ 111.6 million in Q1-2023 (compared to US$ 476 million in 2022 and US$ 88 million in Q1-2022).

The report also said that during the first quarter of 2023, imports stood at $1.8 billion, reflecting 32 percent growth.

The trade deficit reached $1.3 billion in the first quarter of 2023, a 45 percent growth. However, the UN cash shipments for the period (US$ 560 million) cover only less than half of the merchandise trade deficit, the report said.

The inflationary pressures eased substantially from year-on-year, with inflation recorded at 3.5 percent in February.

The Afghani currency appreciated against all currencies. Between February 4 – April 18, 2023, the Afghani currency appreciated by 5.4 percent against the US dollar.

The Islamic Emirate of Afghanistan (IEA) continues to exert strong controls on the illegal export of foreign currency, strengthening the Afghani rate. At the same time, the United Nations make US dollars available in the market through cash shipments (US$ 560 million were shipped to Afghanistan in Q1 2023 against a cumulative – US$ 1.8 billion in 2022), the report said.

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Afghanistan, Uzbekistan strengthen ties with $524 million in trade deals

Speaking at the event, Fayez Ahmad Khwafi, Deputy for Provincial Affairs at the Afghanistan Chamber of Commerce and Investment, highlighted the growing importance of economic ties between the two nations.

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Herat has taken a major step forward as a regional trade powerhouse, with 14 commercial agreements worth over $524 million signed during a high-level business conference linking Afghanistan and Uzbekistan.

The conference, held on Tuesday in Herat, brought together senior government officials and influential business leaders from Herat and Andijan, creating a dynamic platform to deepen economic cooperation, unlock new investment opportunities, and strengthen cross-border partnerships.

Speaking at the event, Fayez Ahmad Khwafi, Deputy for Provincial Affairs at the Afghanistan Chamber of Commerce and Investment, highlighted the growing importance of economic ties between the two nations. He pointed to Herat’s strategic position as a gateway for trade, emphasizing the critical role of the Islam Qala and Torghundi ports in driving regional commerce.

Khwafi stressed that continued exchange between business delegations is essential to sustaining momentum, describing the collaboration between Herat and Andijan as a significant move toward expanding bilateral trade and fostering long-term economic growth.

Adding further weight to the initiative, the Governor of Herat welcomed the agreements and confirmed plans for an upcoming delegation visit to Andijan—signaling a commitment to building even stronger relationships with Uzbek investors and traders.

The event drew wide participation from key stakeholders, including the governors of both regions, heads of national chambers of commerce, and a large contingent of private sector representatives.

Officials say the agreements span multiple industries and are expected to deliver a meaningful boost to trade between Kabul and Tashkent, reinforcing a shared vision for stronger regional economic integration.

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Afghanistan–Uzbekistan forum secures $520 million in trade and investment deals

Officials said the agreements include $300 million in investment commitments, $150 million in imports, and $70 million in exports.

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A joint business forum between Afghan and Uzbek private sector representatives in Kabul has resulted in the signing of 38 agreements valued at $520 million, underscoring deepening economic ties between the two neighbours.

Participants at the forum, including traders from Afghanistan and Uzbekistan’s Andijan Region, finalized deals spanning investment, imports, and exports. Officials said the agreements include $300 million in investment commitments, $150 million in imports, and $70 million in exports.

Afghanistan’s Minister of Commerce and Industry, Nooruddin Azizi, said the latest deals add to a growing portfolio of bilateral agreements, with total contracts between the two countries now exceeding $1 billion. He noted that economic relations between Kabul and Tashkent are shifting from dialogue to concrete implementation.

Azizi highlighted Afghanistan’s potential as a key market for Uzbek goods while also stressing the country’s export capacity. He emphasized the importance of joint investment partnerships and reaffirmed government support for both domestic and foreign investors.

The Afghanistan Chamber of Commerce and Investment reported significant progress in recent months, stating that trade agreements worth $1.4 billion have been signed over the past six months, with some already in operation. The chamber estimates that annual trade between the two countries has reached around $1.5 billion.

Officials from Uzbekistan also pointed to expanding cooperation. Shuhratbek Abdurakhmonov said bilateral relations are steadily improving and noted that Uzbek businesses are ready to share expertise with Afghan partners.

Meanwhile, Davron Vakhobov said Uzbek investors are already active across a range of sectors in Afghanistan, including poultry, textiles, food production, furniture, leather goods, energy infrastructure, pharmaceuticals, and construction. He expressed confidence that private-sector collaboration will continue to grow.

Local authorities also encouraged Uzbek investors to explore opportunities in Nangarhar Province, saying favourable conditions have been created to support new investments.

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IEA issues new decree to regulate street vendors, boost urban order

The decree mandates that all municipalities adhere to urban planning standards in managing street vending activities.

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The leadership of the Islamic Emirate of Afghanistan has unveiled a new decree designed to regulate the operations of street vendors in cities across the country. The initiative seeks to create a more organized urban environment while simultaneously supporting small-scale entrepreneurs.

The decree mandates that all municipalities adhere to urban planning standards in managing street vending activities. Municipalities are instructed to designate specific areas for vendors, ensuring they have clearly marked and organized spaces to conduct business. These designated zones will be monitored to ensure compliance with both health and safety standards.

As part of the formalization of the street vending sector, vendors will be required to register and receive identification cards at no cost. The government aims to create a centralized database to track vendors’ personal details, the nature of their businesses, and their exact operating locations. This move is also intended to aid in ongoing monitoring, ensuring vendors comply with regulations and do not sell prohibited or expired goods.

In addition to these registration requirements, the decree stipulates that vendors must adhere to several conditions. These include maintaining cleanliness at their assigned spaces, refraining from selling illegal products, and avoiding the use of loudspeakers to attract customers.

To ensure compliance, the decree includes a system of enforcement. Vendors who violate the rules will first receive a written warning, while repeat offenders risk having their operating rights revoked. Authorities are committed to ensuring the decree’s effectiveness, with ongoing monitoring and corrective actions.

This new regulation represents a significant step in formalizing the street vending sector, supporting small businesses, and bringing a greater sense of order to Afghanistan’s urban areas.

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