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Azerbaijan and Afghanistan explore expansion of trade corridors via Baku Port

Azerbaijan plays a critical role in this corridor, leveraging its Baku International Sea Trade Port, Baku-Tbilisi-Kars railway, and regional logistics zones.

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Azerbaijan Railways Chairman Rovshan Rustamov met this week with Afghanistan’s Deputy Prime Minister for Economic Affairs, Abdul Ghani Baradar, in Baku to discuss the expansion of cargo transportation routes between South Asia, the Caucasus, and Europe.

The meeting, which took part during Baradar’s visit to Azerbaijan, signals a deepening of economic cooperation as Afghanistan seeks greater integration into regional and transcontinental logistics networks, including the strategically vital Middle Corridor.

According to a statement issued by Azerbaijan Railways, the parties explored ways to enhance multimodal transport cooperation, with a particular focus on facilitating Afghan exports via the Baku Port.

Afghan representatives emphasized the need to accelerate the movement of goods to international markets and called for technical and logistical support from Azerbaijan.

In response, Rustamov expressed Azerbaijan Railways’ readiness to deliver Afghan-origin cargo to European markets, highlighting Baku’s growing role as a regional logistics hub.

“Azerbaijan stands ready to support Afghanistan’s economic integration by providing reliable and efficient access to international corridors,” Azerbaijan Railways stated.

The Middle Corridor and Afghanistan’s Trade Ambitions

The Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), connects China to Europe through Central Asia, the Caspian Sea, the South Caucasus, and Turkey.

Azerbaijan plays a critical role in this corridor, leveraging its Baku International Sea Trade Port, Baku-Tbilisi-Kars railway, and regional logistics zones.

Afghanistan, a landlocked country with limited direct access to global markets, has long sought alternatives to its dependency on Pakistan’s ports.

In recent years, it has aimed to integrate more deeply with regional trade initiatives linking Central Asia, the Caucasus, and Europe—especially after the re-establishment of the Islamic Emirate in 2021 and renewed focus on self-reliance and connectivity.

Despite ongoing political and financial challenges, Afghan exports of dried fruits, minerals, carpets, and medicinal plants have continued to find demand in international markets.

Expanding access to ports via multimodal routes through Uzbekistan, Turkmenistan, and the Caspian Sea could significantly reduce costs and transit times for Afghan producers.

Geopolitical Implications

The meeting between Afghan and Azerbaijani officials underscores the increasing geoeconomic importance of the Middle Corridor amid shifting global supply chains. For Baku, deeper logistics cooperation with Afghanistan presents a chance to strengthen ties with South and Central Asia, diversify transit flows, and cement its position as a bridge between East and West.

For Kabul, the success of such initiatives could not only bolster trade but also enhance its standing in regional diplomacy, offering an avenue for engagement despite a lack of formal international recognition.

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Afghanistan’s pine nut exports increase by 69 percent

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Afghanistan’s pine nut exports increased by 69 percent in the first seven months of the current solar year 1405 compared with the same period last year, reaching $72 million, the Afghanistan Chamber of Commerce and Investment (ACCI) says.

According to chamber officials, the value of pine nut exports stood at $42 million during the first seven months of last year. The product has been exported to European countries, India and, particularly, China.

Meanwhile, officials at the Ministry of Industry and Commerce say they have taken steps since the beginning of the year to expand pine nut exports and identify new markets for the product.

However, some economic experts say pine nuts are among Afghanistan’s key export products and that relevant government ministries, particularly the Ministry of Industry and Commerce, should strengthen efforts to promote the product and secure access to new markets.

Afghan pine nuts are also exported to China, India, the United Arab Emirates, Saudi Arabia, Pakistan, the United States, the United Kingdom, Italy, Germany, Australia, Turkey, Austria and Kuwait.

Experts emphasize that pine nut packaging should be improved to meet the requirements and standards of different international markets in order to further increase exports.

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US sanctions and blockade measures disrupt Iran’s trade with Afghanistan and regional neighbors

The effects have also extended beyond Iran’s borders, affecting regional trade routes and cross-border commerce with neighboring countries, including Afghanistan.

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US naval blockade measures and economic sanctions against Iran are increasingly disrupting the country’s overland trade with Afghanistan and other regional neighbors, including Pakistan, Turkmenistan and Turkey, according to a US Treasury Department report cited by Axios.

The report said Washington aims to pressure Iranian officials into negotiations through economic restrictions and other measures targeting the country’s economy.

According to the Treasury Department, US sanctions and mounting economic pressure have significantly weakened Iran’s national currency, fueled inflation and disrupted commercial activities.

The effects have also extended beyond Iran’s borders, affecting regional trade routes and cross-border commerce with neighboring countries, including Afghanistan.

The developments have raised concerns over the potential economic impact on regional trade, particularly in countries that rely on commercial routes and trade links with Iran.

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Afghanistan inaugurates first phase of Kandahar cement factory

According to officials, the first phase of the factory has a daily production capacity of 1,500 metric tons of cement and is expected to generate thousands of direct and indirect jobs.

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Afghanistan has inaugurated the first phase of the Shorandam Cement Factory in Kandahar province, marking a step toward expanding domestic cement production and reducing reliance on imports.

Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, officially opened the facility on Thursday at a ceremony attended by senior officials of the Islamic Emirate.

Speaking at the ceremony, Baradar said sustainable economic development requires the effective use of domestic resources and a shift from a consumer-based economy to a production-driven one.

He stressed the need to boost local production, reduce imports, expand exports and strengthen the country’s industrial sector.

According to officials, the first phase of the factory has a daily production capacity of 1,500 metric tons of cement and is expected to generate thousands of direct and indirect jobs. Work on the second phase is also expected to begin in the future.

Hidayatullah Badri, Minister of Mines and Petroleum, said cement production had resumed in Afghanistan for the first time since the Islamic Emirate returned to power.

He added that six major cement production projects are currently underway across the country, involving a combined investment of $662 million.

According to Badri, the projects are expected to create employment opportunities for around 15,000 people and meet nearly 50 percent of Afghanistan’s domestic cement demand once completed.

Islamic Emirate spokesperson Zabihullah Mujahid also welcomed the factory’s inauguration, describing it as positive news for the country and emphasizing the importance of maintaining production quality and industrial standards.

Afghanistan currently relies heavily on imported cement to meet domestic demand. The expansion of local production is expected to reduce dependence on imports, support the construction industry and create employment opportunities.

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