Afghanistan and Uzbekistan have signed 25 commercial memorandums of understanding worth more than $300 million, marking a significant boost to bilateral economic cooperation.

The agreements were concluded at a trade connectivity conference attended by Afghanistan’s Minister of Industry and Commerce, Nooruddin Azizi, and the Governor of Uzbekistan’s Syrdarya region, Erkinjon Turdimov, along with senior officials and business leaders from both countries.

Azizi said there is strong political and economic momentum behind expanding bilateral ties, noting that trade between the two sides has grown at an unprecedented pace in recent years. He added that both countries aim to increase trade volumes in 2025 compared to 2024, pointing to significant untapped potential.

He also highlighted preferential trade arrangements covering eight Afghan export items and six Uzbek products.

Turdimov underscored the long-standing historical and economic links between the two nations and noted the active role of Afghan traders in the Syrdarya region.

He called for deeper cooperation in industry and manufacturing, encouraged joint development projects, and outlined Uzbekistan’s investment opportunities, including access to European export markets.

The newly signed agreements span key sectors such as construction, food products, agriculture, furniture, textiles, and pharmaceuticals, reflecting growing private-sector confidence and signaling a new phase in Afghanistan–Uzbekistan economic partnership.

The Torkham crossing, a critical artery for trade between Afghanistan and Pakistan has remained shut to all movement and commercial activity for more than four months, since mid-October last year, deepening economic pain on both sides.

The closure followed clashes between Pakistani and Afghan forces on the night of October 11–12.

Although a ceasefire was later brokered with mediation involving Qatar and Turkey, trade routes have remained sealed amid lingering security concerns.

Alongside Torkham, other crossings—including Kharlachi, Ghulam Khan, Angoor Adda, and Chaman—were also closed, compounding the disruption.

Traders say the economic toll is mounting rapidly. Daily export losses through Torkham from Pakistan alone are estimated at about $2 million, translating to more than $240 million over roughly 120 days.

When stalled imports, lost customs revenue, and knock-on effects are included, the damage runs far higher.

Business groups report Pakistan’s monthly export losses nearing $177 million, with bilateral trade volumes down by more than half in recent periods.

Before the shutdown, Torkham handled around 10,000 travelers a day and 500–700 cargo and passenger vehicles. Its closure has crippled border markets and logistics.

Mujeeb Shinwari, president of Pakistan’s All Customs Clearance Agents Association, said more than 150 clearance offices at Torkham have shut, idling at least 1,000 workers. “This isn’t just about closed offices,” he said. “Entire households have lost their livelihoods.”

Zakir Shinwari, head of the Torkham Labour Union, estimates that over 4,000 daily-wage earners—drivers, loaders, porters, hotel owners, and service providers—have been pushed out of work. Faisal Malook, vice president of the Landi Kotal Traders Union, described a near-total collapse of local commerce, with markets empty and livelihoods cut off.

The shutdown has also distorted prices. Afghan exports of vegetables, cotton, and especially dry fruits—almonds, raisins, figs, pistachios, and pine nuts—have stopped, driving up prices in Pakistani markets.

Meanwhile, Pakistani exports such as potatoes, citrus, bananas, jaggery, and medicines have backed up, depressing prices and inflicting losses on producers.

Beyond the immediate area, factories reliant on Afghan raw materials or markets have slowed. Hopes of wider regional integration, including major power and transit initiatives linking Central and South Asia, have dimmed as prolonged closures and instability continue to undermine confidence in overland trade routes.

A proposed rail connection linking Iran to China through Afghanistan could reduce transport distances by up to 50 percent and enable direct freight train services to Europe.

The proposed Herat–Mazar-e-Sharif–Wakhan railway would connect China to Europe and West Asia via Afghanistan, Iran, and Turkey, strengthening regional trade corridors, IRNA reported. The project was recently discussed during talks between Afghan public works officials and the CEO of Iran Railways.

Iranian rail officials say the plan would use standard-gauge tracks, allowing trains to travel directly from China to Europe without cargo transfers, easing bottlenecks at borders with Kazakhstan and Turkmenistan. Technical studies are underway to assess investment needs.

Since the start of the current Iranian year, more than 63 China-bound freight trains have entered Iran, up from seven last year.

Officials estimate annual traffic on the China–Europe route could rise to 300 trains following regional agreements.

The project includes a 64-kilometer rail segment to Herat, an extension to Mazar-e-Sharif, and a connection through Afghanistan’s Wakhan region to China’s Xinjiang province. Despite challenging terrain, Iranian and Afghan companies have expressed interest in construction.

Iranian officials say the route would cut costs and transit time, boost trade with China, and strengthen Afghanistan’s integration into regional rail networks.