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ADB suspends TAPI project until IEA gains international recognition

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The Asian Development Bank (ADB) has confirmed that work on the trans-nations Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project has been suspended until the Islamic Emirate of Afghanistan (IEA) government has gained international recognition.

In response to an email sent to the ADB by Ariana News, an official confirmed that the project has been put on hold.

He said the ADB “has paused all its TAPI project due diligence and processing activities until further notice.”

According to the ADB, while the international community continues to assess the evolving situation in Afghanistan, the bank has decided to hold off on its assistance in Afghanistan. The official said the ADB however continues to consult with its shareholders and other stakeholders to monitor the situation in Afghanistan.

The $10 billion TAPI project to transport Turkmen natural gas through Afghanistan to Pakistan and India is one of the largest economic projects to date in the region.

“Some time ago, the Pakistani Minister of Economy said that we have a security problem and we cannot complete this project, and they have a problem with the fact that they want to eliminate India, but India will not be eliminated by Turkmenistan, which in fact is India’s last TAPI station, ” said Sayed Massoud an economic analyst.

IEA officials meanwhile said about two weeks ago that they had met with the TAPI project chief executive and the Turkmen ambassador to Kabul to discuss the project.

“The TAPI project is so important that it will change not only Afghanistan but also the region’s economy, and its first implication for Afghanistan is that it gives Afghanistan an international value.

“Second, common economic provisions create security and increase economic cooperation,” said Shirbaz Kaminzada, the President of the Afghanistan Chamber of Industries and Mines.

The TAPI project stretches for about 1,800 km and will transport about 33 billion cubic meters of Turkmen natural gas annually through Afghanistan to Pakistan and India.

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First Chinese transit shipment arrives in Herat via Iran’s railway corridor

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Iranian media have reported the launch of the first direct transit train on the Beijing–Iran–Afghanistan route, carrying a shipment from China to Herat province through Iran’s railway network.

Mustafa Rezaei, head of the Iran–Afghanistan Railway Corridor, said the shipment marks the first time that cargo has been transported directly from China to Afghanistan without unloading and reloading along the way.

The 500-tonne shipment of MDF boards was loaded in Beijing, passed through Turkmenistan, entered Iran’s railway network, and was then transported to Rozanak station in Herat province via the Khaf–Herat railway line.

Rezaei described the operation as the first direct rail transit service connecting Beijing and Herat through Iran, saying the route would significantly reduce transportation time and costs compared with previous trade routes.

He said the launch of the train demonstrates that the Khaf–Herat railway corridor has entered a new phase of commercial and transit operations. Increasing cargo volumes along the route could further enhance its role as a key link connecting China, Central Asia, Iran, and Afghanistan.

Rezaei added that expanding the corridor could strengthen economic and trade cooperation between Iran and Afghanistan, lower logistics costs, and improve the competitiveness of regional commerce.

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Afghanistan transit trade through Pakistan hits historic low

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Afghanistan’s transit trade through Pakistan has dropped to its lowest level in years, according to Pakistan’s Dawn newspaper.

The report says transit cargo declined from nearly 89,000 containers worth $5 billion before the Islamic Emirate returned to power to just 11,592 containers valued at $367 million in the last fiscal year.

According to Dawn, while Pakistan’s closure of Durand Line crossings with Afghanistan in October 2025 over security concerns accelerated the decline, the downward trend had already begun earlier.

Trade analysts told the newspaper that Afghanistan had already been working to reduce its reliance on Pakistani ports by expanding trade through Iran and strengthening commercial links with Central Asian countries.

The report says transit cargo through Pakistan initially rose after the Islamic Emirate’s return to power, peaking at more than 102,000 containers in fiscal year 2023, before steadily declining in subsequent years.

Dawn also reported that reverse transit, which allowed Afghan exports to reach third countries—particularly India—through Pakistan, has nearly come to a halt, falling from $454 million in fiscal year 2025 to just $7 million in fiscal year 2026.

Citing the World Bank, the newspaper said Iran has become Afghanistan’s largest source of imports, with Iranian direct and transit routes now accounting for nearly half of the country’s total imports.

However, the World Bank says the shift to alternative routes has increased import costs, reduced export revenues, and added inflationary pressure, while the decline in cross-Durand Line trade has also affected thousands of jobs linked to transport, customs, warehousing, and other businesses.

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Afghanistan, India discuss ways to boost trade and investment ties

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Sayed Karim Hashemi, chairman of the Afghanistan Chamber of Commerce and Investment (ACCI), has met with Indian ambassador in Kabul, Yatin Patel, to discuss ways to strengthen bilateral trade and investment cooperation.

According to ACCI, the meeting focused on expanding exports, improving trade facilitation, easing business visa procedures, enhancing logistics, and increasing cooperation in key sectors including agriculture, mining, and handicrafts.

The two sides also agreed to promote joint exhibitions, organize business delegations, and develop long-term partnerships between the private sectors of Afghanistan and India.

The meeting comes as Afghan and Indian officials and business leaders continue efforts to expand economic relations and create new opportunities for trade and investment between the two countries.

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