Business
Durand Line closures push up prices of essentials such as tomatoes
Durand Line closures have pushed up prices of essential goods in Afghanistan and Pakistan, with tomatoes now costing five times more in Pakistan since fighting broke out between the two South Asian neighbours this month.
Durand Line crossings have remained closed since October 11, following ground fighting and Pakistani airstrikes across the line that killed dozens on both sides in the worst fighting since the Islamic Emirate’s 2021 takeover of Kabul.
All trade and transit have been blocked since the fighting erupted, Khan Jan Alokozay, the head of the Pak-Afghan Chamber of Commerce in Kabul, told Reuters on Thursday.
“With each passing day, both sides are losing around $1 million,” he said.
Fresh fruit, vegetables, minerals, medicine, wheat, rice, sugar, meat and dairy products make up most of the $2.3 billion annual trade volume between the two countries.
The prices of tomatoes, used extensively in Pakistani cooking, have jumped by over 400% to around 600 Pakistani rupees ($2.13) per kg. Apples, which mostly come from Afghanistan, are also seeing a price surge.
“We have around 500 containers of vegetables for export daily, all of which have spoiled,” said Alokozay.
Around 5,000 containers of goods are stranded on both sides of the border, said a Pakistani official at the main Torkham border crossing in northwest Pakistan.
He said there was already a shortage of tomatoes, apples and grapes in the market.
The Durand Line clashes were triggered after Islamabad demanded that Kabul control militants who attack Pakistan, saying they operated from havens in Afghanistan. The Islamic Emirate has denied the charge.
A ceasefire was agreed in talks hosted by Qatar and Turkey last weekend and is holding between the two sides, but trade remains suspended. The next round of negotiations is scheduled for October 25 in Istanbul.
Business
Dogharoun handles 60% of Iran’s exports to Afghanistan
Modoudi invited machinery manufacturing companies in Iran to establish operations in the area.
Mohammadreza Modoudi, CEO of the Dogharoon Free Zone, has criticized what he described as the neglect of Dogharoun’s potential, saying Iran ranks first among all countries in terms of exports of goods to Afghanistan.
He said 60 percent of this large volume of exports passes through the Dogharoun border crossing, adding that, despite this, the region’s significant potential has been overlooked.
Modoudi invited machinery manufacturing companies in Iran to establish operations in the area.
He said it is time to take a realistic approach and transform Dogharoun from a transit route into a major hub for production, value-chain development and a driving force for international trade.
Business
EU and FAO launch €5m programme to strengthen Afghanistan’s agrifood sector
FAO Representative in Afghanistan Richard Trenchard said agrifood businesses had shown potential to grow and create jobs despite difficult conditions.
The European Union (EU) and the Food and Agriculture Organization of the United Nations (FAO) have launched a €5 million initiative to help Afghan farmers and agribusinesses access markets, improve incomes and withstand climate and economic shocks.
The programme will target vulnerable households, including returnees, internally displaced people and host communities, particularly in areas affected by food insecurity, climate risks and limited economic opportunities. Women and youth will be key beneficiaries.
Four one-stop service hubs will connect farmers and rural entrepreneurs with agricultural advice, specialised services, businesses and markets. Farmers will also gain access to FAO climate analysis and early-warning information to help them make timely production and marketing decisions.
The initiative will restore 2,000 hectares of degraded forests and rangelands and support 250 women- and community-led nurseries, combining environmental protection with new livelihood opportunities.
FAO will also provide matching grants and technical and business support to established agrifood and environmentally sustainable enterprises with growth potential. Participating businesses will contribute their own resources, helping expand processing, source from more local farmers and create rural jobs.
Nicola Bellomo, the EU’s new Chargé d’Affaires for Afghanistan, said the programme reflected the EU’s commitment to food security and economic empowerment.
“Afghanistan’s agricultural potential remains undervalued and constrained by the country’s extreme climate vulnerability,” Bellomo said, adding that the partnership would strengthen agricultural services, support agribusiness growth and promote nature-based solutions.
FAO Representative in Afghanistan Richard Trenchard said agrifood businesses had shown potential to grow and create jobs despite difficult conditions.
“When farmers can produce with confidence, businesses can grow and products can reach markets, agriculture becomes a powerful engine for recovery and resilience,” he said.
Business
UAE firm eyes investment in Salang’s second tunnel and pharmaceutical factories
The proposals will be submitted to the Inter-Ministerial Investment Committee for further review and discussion.
A United Arab Emirates-based company, HHM Global Industry Group, has expressed interest in investing in the construction of the second Salang Tunnel and establishing pharmaceutical factories in Afghanistan.
The issue was discussed at a regular meeting of the Inter-Ministerial Investment Committee, held on September 8, 2026, at the Marble Palace under the Economic Deputy Office of the Prime Minister’s Office.
The committee welcomed the company’s interest in investing in Afghanistan and assured its representatives that the relevant ministries and government agencies are prepared to provide comprehensive cooperation.
Following extensive discussions, company officials were asked to prepare detailed investment proposals for the construction of the second Salang Tunnel, pharmaceutical manufacturing facilities, as well as other potential investment projects.
The proposals will be submitted to the Inter-Ministerial Investment Committee for further review and discussion.
If implemented, the proposed investments could contribute to the development of Afghanistan’s transport infrastructure and strengthen domestic pharmaceutical production.
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