Business
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.
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.
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.
Several major international pharmaceutical companies could invest in medicine production in Afghanistan as part of growing cooperation between UN agencies and Afghan authorities, who hope to strengthen the country’s healthcare system.
The development was highlighted during a meeting between Afghanistan’s Minister of Economy, Din Mohammad Hanif, and UNICEF Representative Tajudeen Oyewale, where discussions focused heavily on improving healthcare access and expanding pharmaceutical capacity.
UNICEF officials indicated that several global drug manufacturers are preparing to coordinate with Afghanistan’s Ministry of Public Health on establishing or supporting local medicine production.
The aim is to improve the availability of essential medicines for humanitarian operations while also strengthening supply in domestic markets.
The proposed investments are expected to reduce Afghanistan’s reliance on imported pharmaceuticals and improve access to essential treatments, particularly in areas affected by economic hardship and ongoing humanitarian needs.
Alongside the pharmaceutical plans, UNICEF reaffirmed its continued commitment to humanitarian assistance in Afghanistan, including programmes addressing food insecurity, climate-related pressures, and support for returning migrants.
According to figures discussed in the meeting, $520 million has been requested from international donors to support returnees. Of this, $100 million is allocated for emergency assistance, while $420 million is intended for longer-term resettlement and reintegration support.
Afghan authorities welcomed the prospect of expanded pharmaceutical investment, with Din Mohammad Hanif stressing the importance of development cooperation, job creation, and increased international engagement to support economic stability.
Officials said strengthening the pharmaceutical sector could become a key pillar in Afghanistan’s broader efforts to improve healthcare resilience and move toward greater self-sufficiency in essential medical supplies.
Afghanistan has sharply increased imports of grain from Kazakhstan, with deliveries rising 2.3-fold between September 2025 and May 20, 2026, according to Kazakhstan’s Agriculture Ministry.
During that period, Kazakhstan exported around 3 million tons of grain to Afghanistan, compared to 1.3 million tons in the same period a year earlier.
The increase comes as Afghanistan’s Finance Ministry said this week that wheat imports into the country have risen by 345% following changes in customs tariffs aimed at supporting domestic production. According to the ministry, tariffs on imported wheat flour were gradually increased from 5% to 8%, while duties on wheat imports were reduced to encourage local flour processing.
Officials said nearly 198,000 tons of wheat were imported during the first two months of the 1405 fiscal year, compared to 44,000 tons during the same period last year. The ministry added that the policy has helped expand operations at domestic flour factories, increase local production, and create more job opportunities.
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