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Afghanistan and Kyrgyzstan sign landmark economic and Trade Cooperation Agreement

The Kyrgyz side pledged to make commercial visa issuance easier, improve banking links, and facilitate transport routes for Afghan traders.

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Afghanistan and Kyrgyzstan have taken a major step toward strengthening bilateral economic relations with the signing of a Memorandum of Understanding (MoU) and a detailed roadmap for cooperation between the Ministry of Industry and Commerce of the Islamic Emirate of Afghanistan and the Ministry of Economy and Trade of the Kyrgyz Republic.

The agreement was reached during the high-level visit of an Afghan delegation led by Nooruddin Azizi, Acting Minister of Industry and Commerce, to Bishkek, Kyrgyzstan. The delegation held extensive talks with Bakyt Sydykov, Kyrgyzstan’s Minister of Economy and Trade, focusing on expanding commercial ties and removing barriers to cross-border business.

Discussions covered the establishment of a Joint Trade Council, regular in-person and virtual meetings, and the creation of a joint working group to monitor progress. Plans were also made to launch trade houses and commercial centers in each country, organize economic forums, exhibitions, and B2B meetings, and promote joint investment in Afghanistan.

Both sides also agreed to explore the creation of bilateral transit corridors, sign trade and transit development agreements, and work toward trilateral cooperation involving Uzbekistan and Tajikistan.

Digital trade facilitation was another priority on the agenda, with commitments to improve the digitalization of trade and banking services to reduce red tape and speed up transactions.

The Kyrgyz side pledged to make commercial visa issuance easier, improve banking links, and facilitate transport routes for Afghan traders.

This latest agreement comes as Afghanistan seeks to diversify its trade partners and expand its role in regional commerce. Since the return of the Islamic Emirate in 2021, Afghanistan has increased its outreach to Central Asian states, capitalizing on its strategic position as a potential transit hub linking South Asia, Central Asia, and the Middle East. Kyrgyzstan, for its part, sees opportunities in tapping into Afghanistan’s markets for agricultural goods, textiles, construction materials, and transit routes toward Pakistan’s seaports.

At the conclusion of the meeting, both ministers hailed the MoU as a “significant milestone” in bilateral relations, expressing hope that it would pave the way for tangible business growth and stronger economic integration between the two countries.

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Kazakhstan grain exports to Afghanistan jump sharply

Shipments to Afghanistan reached 302,000 tons during the period, marking a 4.2-fold increase compared to the same timeframe last year.

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Grain exports from Kazakhstan to Afghanistan surged more than fourfold in the first quarter of 2026, according to a report by Kazinform International News Agency.

Shipments to Afghanistan reached 302,000 tonnes during the period, marking a 4.2-fold increase compared to the same timeframe last year.

Kazakhstan’s overall grain exports also recorded solid growth, rising 18 percent to 3.2 million tonnes. Domestic grain shipments increased by 8 percent, totaling 0.9 million tonnes.

Looking ahead, Kazakhstan plans to expand its agricultural processing capacity, with new grain facilities expected to handle a combined 5.8 million tonnes annually by 2028.

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Afghan economic commission approves 12 major development projects across key sectors

In the infrastructure sector, projects include connecting the eastern Kandahar substation to the new central substation in Tarinkot, as well as a major electricity transmission project from Kajaki dam to New Tarinkot.

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The Economic Deputy Office of the Prime Minister says 12 major development projects have been approved in the latest meeting of the Economic Commission and referred to relevant departments for implementation.

According to the statement, the approved projects include the transfer of imported electricity to the province of Paktika, construction of a double-circuit transmission line from Ghazni, completion of remaining substation works, and expansion of the national power network.

The package also includes extension of electricity lines from the Nurul-Jihad substation to the provinces of Herat, Farah, and Nimroz, as well as supplying electricity to Seydan village in the Grishk district of Helmand.

In the infrastructure sector, projects include connecting the eastern Kandahar substation to the new central substation in Tarinkot, as well as a major electricity transmission project from Kajaki dam to New Tarinkot.

Other approved projects include irrigation schemes in Faryab, upgrading and activating the 350-bed Aino Mina hospital in Kandahar, construction of a grand mosque with a capacity of 40,000 worshippers in Nimroz, and expansion of the Torghundi–Herat and Andkhoy–Shiberghan–Mazar-i-Sharif railway lines.

Officials say these projects aim to strengthen infrastructure, improve public services, and support economic growth across the country.

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Afghanistan, Iran sign 23-point MoU to expand border trade

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Local authorities in Iran’s Sistan and Baluchestan province say a 23-point memorandum of understanding (MOU has been signed with Afghan officials following a recent visit by an Iranian delegation to Nimroz, aimed at deepening economic cooperation and boosting cross-border trade.

Mojib Hassani, Deputy for Economic Coordination and Regional Development in Sistan and Baluchestan, said the visit produced significant outcomes, particularly in expanding small-scale trade, activating border markets, and strengthening bilateral economic ties, IRNA news agency reported.

He noted that Iran is fully prepared to launch local border markets in Shahgol, Milak, and Gomshad, but implementation will depend on readiness from the Afghan side. According to Hassani, the necessary infrastructure has already been completed on Iran’s side of the border.

Trade through official crossings remains ongoing, he said, with livestock imports among the key commodities exchanged—especially ahead of Eid al-Adha, when demand typically rises.

Hassani added that the 23-point framework was developed following the Afghan Minister of Commerce’s visit to Iran, with a strong focus on improving and expanding infrastructure to facilitate trade.

Among the early outcomes of the agreement is the construction of a temporary road linking two border markets, completed within a short timeframe and already contributing to increased trade flows.

He also confirmed Iran’s readiness to build a second border bridge, noting that some equipment has already been deployed. However, further progress on the project—currently around 30 percent complete—will require coordination with Afghan authorities.

Plans are also underway to install an X-ray scanning system at the border, with the process accelerated and expected to be finalized by the end of Jawza (June).

In addition, Hassani said broader infrastructure projects, including road expansion and rail development in the region, are being considered, though they will take time to implement.

He further highlighted efforts in Iran’s Chabahar Free Zone to facilitate Afghan traders, including the development of commercial storage facilities and the allocation of land for business use.

Iranian officials say these initiatives are part of a broader strategy to transform the shared border into a hub for sustainable economic cooperation between the two countries.

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