Business
Envoy says Pakistan and Afghanistan will have to resolve trade issues themselves
Pakistan and Afghanistan would have to resolve their problems themselves, especially trade issues. International community and regional powers want to keep the two neighboring countries engaged in minor issues while the policymakers of the two countries need to sit together and remove the hurdles in the way of beneficially mutual trade.
This was the crux of the seminar on ‘Pak-Afghan Bilateral Trade Relations’ organized by the Institute of Regional Studies on Wednesday.
Afghan Consul General in Peshawar, Hafiz Mohibullah, was the guest of honor.
IRA Chairman Dr Mohammad Iqbal Khalil, Director Pak-Afghan Chamber Ziaul Haq Sarhadi, member of the chamber Shahid Hussain and a columnist Alamgir Afridi spoke at the event.
The speakers said that certain elements want to create and maintain tension between the two countries.
They said the leadership of the two Muslim countries should work out a solution to the economic challenges faced by them.
Hafiz Mohibullah said that instead of looking to others, the two countries would have to solve their political and economic problems themselves.
He said during America’s 20-year occupation of the country, the US and NATO could not establish a single institution or hospital in Afghanistan. Also, he added, the US and NATO failed to take any steps for the economic betterment of Afghanistan.
“All that the US and NATO did in Afghanistan during their stay was to spread destruction. On the other hand the government of Islamic Emirate carried out such projects during its one-year rule in the country which could not be done by the occupation forces and their puppet government(s) during 20 years,” he claimed.
He said the former president of Afghanistan, Ashraf Ghani had control over just one-third of the country, while the Islamic Emirate’s control extended to every nook and corner of the country. The diplomat said the world nations have not yet formally recognised the rule of the Islamic Emirate. But, interestingly they were making various demands to the Taliban government, he added.
About Afghanistan-Pakistan relations, Hafiz Mohibullah said both the countries needed the help and support of each other. The way the people of the two countries supported each other in the past, they should have mutual cooperation for promotion of bilateral trade.
“If they support each other to promote their mutual trade, they would not be in need of looking towards others,” he remarked.
He said that the US and NATO wanted to create problems, but the leadership of the two countries would not allow them to interfere in their affairs. This way they would overcome their economic issues, he said.
Dr Iqbal Khalil said the two countries were connected with each other in all the sectors and their cooperation would result in the development of both the countries. He said that Afghanistan and Pakistan were confronting trade and economic challenges which they should mutually overcome.
The speaker said that despite their important geo-strategic position, the mutual trade between the two countries has decreased instead of showing an increase.
He said that Afghanistan was the major market for trade and industry of Khyber Pakhtunkhwa.
Dr Iqbal Khalil expressed his optimism that peace would be restored in Afghanistan and the government of Islamic Emirate would give a roadmap for trade relations with Pakistan.
Ziaul Haq Sarhadi said the trade volume between Afghanistan and Pakistan during 2022-23 was $968 million, while it was $2.5 billion in 2012.
He said the trade agreement of 1965 between the countries functioned smoothly for 45 years. But in 2010 a new agreement was signed, which was protested by traders and chambers of both the countries. This agreement is not useful and it has become virtually ineffective, he said. This issue needs to be resolved, he added.
Business
Uzbekistan approves feasibility study agreement for Trans-Afghan Railway
The agreement builds on a tripartite document signed on July 17, 2025, which outlined cooperation on preparing a feasibility study for the Termez–Kharlachi railway corridor.
Uzbekistan has ratified an international agreement to prepare a feasibility study for the Naybabad–Kharlachi section of the Trans-Afghan Railway, formalizing its participation in the project.
President Shavkat Mirziyoyev signed a decree on February 4 approving the agreement.
The framework agreement involves the transport ministries of Uzbekistan, Afghanistan and Pakistan and provides for joint work on a feasibility study for the proposed railway line between Naybabad and Kharlachi. The section forms part of the wider Trans-Afghan Railway project aimed at strengthening transport links between Central and South Asia.
Under the decree, Uzbekistan’s Ministry of Transport has been designated as the competent authority responsible for implementing the agreement. The Ministry of Foreign Affairs has been tasked with notifying Kabul and Islamabad that Uzbekistan has completed the internal procedures required for the agreement to enter into force.
The agreement builds on a tripartite document signed on July 17, 2025, which outlined cooperation on preparing a feasibility study for the Termez–Kharlachi railway corridor.
The planned route is expected to run through Termez, Naybabad, Maidanshahr, Logar and Kharlachi, providing a transit corridor through Afghanistan.
The feasibility study will be commissioned by the Tripartite Project Office for the Development Strategy of International Transport Corridors under Uzbekistan Railways.
Established in Tashkent in May 2023, the office also operates branches in Kabul and Islamabad to coordinate the project.
First proposed in 2018, the Trans-Afghan Railway was initially projected to carry up to 20 million tons of cargo annually at a cost of about $5 billion. Cost estimates have since been revised.
In July 2022, Uzbekistan Railways cited an estimate of $4.6 billion with a construction period of up to five years, while Pakistan’s Ministry of Railways put the cost at $8.2 billion in December 2024.
More recent assessments have placed the overall cost at around $7 billion, with a public-private partnership under a Build-Operate-Transfer model among the options under consideration.
Business
Afghanistan seeks expanded ties with Russia in energy, mining and infrastructure
TASS reported that Kabul is also prepared to cooperate with Moscow in the extraction of mineral resources.
Afghanistan has expressed strong interest in broadening trade and economic cooperation with Russia, with a particular focus on energy, mining and infrastructure projects, according to Russia’s TASS news agency.
In an interview with TASS, Afghanistan’s Ambassador to Moscow, Gul Hassan, said Kabul is keen to import oil and gas from Russia as part of efforts to deepen bilateral economic ties.
He noted that trade relations between the two countries are progressing and that, if key obstacles—especially banking restrictions—are addressed, Afghanistan could also import medicines, industrial goods, grain, vegetable oils and other commodities from Russia.
In return, the ambassador said Afghanistan is ready to export fresh and dried fruits, vegetables, medicinal plants, carpets and mineral resources to the Russian market, adding that expanding export-import operations could significantly increase bilateral trade volumes.
He also revealed plans to open an exhibition of Afghan products in Moscow, which he said would help boost trade turnover.
TASS reported that Kabul is also prepared to cooperate with Moscow in the extraction of mineral resources.
Hassan described the economy as a central pillar of Afghanistan’s foreign policy, emphasizing the government’s goal of positioning the country as a key link in regional economic integration and attracting foreign investment.
He noted that Russian companies have long shown interest in Afghanistan’s industrial, mining and infrastructure sectors.
The ambassador further told TASS that Russian firms are already in talks with relevant Afghan authorities on the construction of small hydroelectric power plants.
Representatives of several Russian companies have reportedly visited Afghanistan and held meetings with officials and technical experts.
According to Hassan, practical steps toward cooperation in the energy and power generation sectors are expected in the near future, pointing to a potential new phase in Afghan-Russian economic relations.
Business
Pakistan, China plan to extend CPEC to Afghanistan, revive trilateral framework
The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics.
Pakistan and China are moving forward with plans to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan, a strategic step aimed at bolstering regional connectivity and economic cooperation. The expansion, along with the revival of the Pakistan-China-Afghanistan trilateral framework, was discussed in a recent briefing to the Pakistani Senate Standing Committee on Foreign Affairs.
According to Pakistan Today, officials from Pakistan’s Ministry of Foreign Affairs outlined the details during a session in Islamabad, where they reviewed key aspects of Pakistan’s foreign relations, regional developments, and economic diplomacy.
Officials emphasized that Pakistan’s relationship with China remains strong, underscoring the “all-weather” strategic partnership between the two nations. Strengthening ties with Beijing, they stated, continues to be a cornerstone of Pakistan’s foreign policy. This includes unwavering support for China’s position on regional and international issues, particularly the One-China policy and matters related to territorial integrity.
The briefing also touched upon China’s consistent backing of Pakistan in various areas, including sovereignty, economic stability, counter-terrorism, and support for Pakistan’s exit from the Financial Action Task Force (FATF) grey list.
The Kashmir issue was also addressed, with officials noting that China considers it an unresolved matter and advocates for a peaceful resolution in line with UN Security Council resolutions.
The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics. Officials stated that reviving the trilateral framework is part of broader efforts to foster greater cooperation and connectivity in the region, with an eye on long-term stability and prosperity.
The move also reflects both countries’ desire to further integrate Afghanistan into the regional economic landscape, a key element in fostering peace and development.
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