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Uzbekistan launches exchange-based trade system with Afghanistan to boost bilateral commerce

The system is designed to simplify transactions by using secure financial instruments and bank guarantees, which significantly lower risks for both parties.

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Uzbekistan has rolled out a new exchange-based trade system with Afghanistan, a move aimed at enhancing economic ties between the two nations. Initiated by the Uzbekistan Chamber of Commerce and Industry, the new mechanism utilizes the existing infrastructure of the Uzbekistan Commodity Exchange (UzEX), allowing exporters to engage in direct trade with the Afghan market while reducing additional banking costs.

The system is designed to simplify transactions by using secure financial instruments and bank guarantees, which significantly lower risks for both parties. Under the new framework, settlements are based on these guarantees, ensuring a smoother and more reliable flow of goods and payments.

According to Davron Vakhabov, Chairman of the Chamber of Commerce and Industry of Uzbekistan, the system was conceived following a directive from President Shavkat Mirziyoyev in September 2025. The President called for integrating the UzEX platform with a private Afghan bank to facilitate the supply of goods to Afghanistan, strengthening bilateral commerce.

To participate in the new trade mechanism, Uzbek exporters must register on the UzEX platform and list their products for exchange trading. Afghan buyers can then execute transactions through an Afghan bank, making an initial payment of 10% of the contract value. Upon successful agreement, the Uzbek supplier ships the goods, accompanied by the necessary documentation. The remaining 90% of the payment is held in bank accounts until the goods reach the Afghan border, at which point the funds are released to the seller.

In an additional layer of financial security, a private Afghan bank places funds in five Uzbek banks—Trustbank, Uzpromstroybank, Infinbank, Asaka Bank, and Agrobank—ensuring that payments are guaranteed for goods delivered.

Vakhabov emphasized that both the Chamber of Commerce and Industry and UzEX are fully committed to assisting Uzbek entrepreneurs in accessing the Afghan market. The introduction of this exchange-based system is expected to strengthen trade between the two countries, fostering economic growth and cooperation in the region.

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Iran’s Khorasan Razavi governor calls for greater economic cooperation with Afghanistan

He further proposed the creation of free economic zones on both sides of the border, arguing that such initiatives could attract joint investment and boost commercial activity.

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Gholam Hossein Mozaffari, governor of Iran’s Khorasan Razavi province, has called for expanded economic cooperation and joint investment between Iran and Afghanistan, saying the economic growth of both countries depends on stronger bilateral engagement.

Speaking during a meeting with Noor Mohammad Motawakel, Afghanistan’s consul general in Mashhad, Mozaffari said the deep cultural and economic ties between the two neighbors provide a strong foundation for enhancing trade and investment.

According to Iran’s state news agency IRNA, he described Afghanistan as an important economic partner and stressed the need to make better use of existing opportunities to strengthen cooperation between the two countries.

Mozaffari also highlighted the strategic importance of the Islam Qala border crossing, saying efforts are underway to improve infrastructure and streamline operations at the gateway in order to facilitate trade and cross-border movement.

He further proposed the creation of free economic zones on both sides of the border, arguing that such initiatives could attract joint investment and boost commercial activity.

Addressing the issue of Afghan nationals living in Iran, the governor said Tehran aims to regulate the entry, residency and employment of Afghan citizens through a transparent and legal framework. He added that plans are being pursued to issue work visas for businesspeople and establish clearer mechanisms for managing the presence of Afghan nationals in the country.

Mozaffari also emphasized the importance of safeguarding the dignity and rights of Afghan citizens in Iran while reducing irregular cross-border movements through stronger legal channels.

For his part, Motawakel called for the resumption of taxi services between Herat and Taybad, noting that operations were suspended following the recent conflict and have not yet resumed.

The Afghan diplomat also raised concerns about challenges facing Afghan nationals in Iran, including the high cost of health insurance and issues related to the transfer of Afghan prisoners, and urged authorities to address these matters.

Motawakel said implementing agreements reached between Kabul and Tehran would benefit both countries and contribute to expanding economic and transit cooperation.

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Afghanistan expands oil production as investment in Amu Darya fields grows

The Ministry of Mines and Petroleum says dozens of wells are currently operational in the Amu Darya region, with additional wells expected to become operational soon.

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Afghanistan’s oil sector is seeing steady expansion, with officials reporting increased extraction activity in the northern Amu Darya basin and expectations of significantly higher output in the near future.

The Ministry of Mines and Petroleum says dozens of wells are currently operational in the Amu Darya region, with additional wells expected to become operational soon. The expansion is projected to raise daily production by several hundred tons compared with current levels.

The ministry’s spokesman Humayoun Afghan said the country holds substantial untapped oil potential, adding that efforts are underway to accelerate development of northern oil fields.

Officials from the Ministry of Mines and Petroleum also confirmed that plans are in progress to build oil storage facilities alongside the expansion of extraction capacity, aimed at strengthening Afghanistan’s broader energy infrastructure.

The ministry further said it is working with private sector partners to develop large-scale oil refineries, part of a broader strategy to increase domestic processing and reduce reliance on imported fuel products.

In the Amu Darya Basin, members of the oil refinery union say investment in the energy sector has risen in recent years, with investors expressing interest in further expanding refining and processing capacity if more opportunities become available.

Economic analysts argue that sustained investment in mining and energy, combined with targeted incentives for investors, could generate tens of thousands of jobs while boosting national revenues.

Private sector representatives add that expanding domestic production, storage, and refining could improve economic stability and reduce the outflow of foreign currency currently spent on fuel imports.

They are urging the Islamic Emirate to accelerate policy measures that facilitate investment and remove barriers to growth in Afghanistan’s oil and energy sector.

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Chief of Jamaat-e-Islami Pakistan calls for reopening of Durand Line crossings

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Hafiz Naeemur Rehman, chief of Pakistan’s Jamaat-e-Islami Pakistan political party, has called for the immediate reopening of crossings along the disputed Durand Line and the regularisation of trade with Iran, warning that prolonged border restrictions are worsening economic hardship for communities on both sides.

Speaking at a public gathering in Zhob, in Pakistan’s Balochistan province, Rehman said restoring cross-border trade was essential for reviving Pakistan’s struggling economy and reducing pressure on ordinary citizens already grappling with inflation and unemployment.

He proposed the formation of a joint committee made up of tribal elders, business leaders and local representatives to help restore trade, resolve disputes and maintain stability along the border region.

Rehman also called for the establishment of special trade zones along the Durand Line to facilitate legal commerce and create employment opportunities in areas heavily dependent on cross-frontier movement.

The Jamaat-e-Islami leader criticised current management policies, alleging that crossings were being opened selectively for the benefit of a small group of traders while thousands of transport workers, merchants and families continued to suffer financially from the closures.

Major crossings along the Durand Line have remained largely shut since October 11 following intense clashes between Afghan and Pakistani forces and Pakistani airstrikes inside Afghanistan that reportedly killed dozens of people on both sides.

The violence sharply escalated already strained relations between Islamabad and Kabul, with Pakistan accusing Afghanistan-based militants of carrying out cross-border attacks, claims the Afghan authorities have repeatedly denied.

The prolonged restrictions have severely disrupted trade and travel between the two countries, particularly affecting frontier provinces where local economies rely heavily on the movement of goods, fuel and agricultural products.

Traders and transport unions in both Afghanistan and Pakistan have repeatedly warned that continued closures are causing heavy financial losses and worsening shortages in some areas.

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