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Afghanistan offers tax breaks, free land to attract Indian investors

Separately, the Indian government confirmed that air cargo services between the two countries will resume shortly.

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The Islamic Emirate of Afghanistan (IEA) has invited Indian businesses to expand their presence in the country, offering a package of incentives designed to boost bilateral trade and investment.

Addressing an interactive session hosted by industry body PHDCCI in New Delhi on Friday, Afghanistan’s Minister of Industry and Commerce Alhaj Nooruddin Azizi said Kabul sees major opportunities for collaboration in mining, agriculture, health and pharmaceuticals, information technology, energy and textiles.

Azizi outlined several incentives aimed at drawing Indian investors, including a 1 percent tariff on raw materials and machinery, free land for industrial projects, reliable electricity supply, and proposed five-year tax exemptions for new industries — especially those established by returning Afghan refugees.

He also encouraged the involvement of Afghan Sikh and Hindu communities, emphasising that Afghanistan is committed to maintaining a “peaceful, inclusive and business-friendly environment.”

Bilateral trade between India and Afghanistan is currently valued at around $1 billion, with both sides taking steps to deepen cooperation. These include appointing commercial attaches in each other’s embassies and reactivating the joint working group on trade, commerce and investment.

Separately, the Indian government confirmed that air cargo services between the two countries will resume shortly. Anand Prakash, Joint Secretary at the Ministry of External Affairs, said the air freight corridor on the Kabul–Delhi and Kabul–Amritsar routes “has been activated,” with cargo flights set to begin “very soon.”

“This will significantly enhance connectivity and further strengthen our trade and commercial ties,” he noted, adding that both governments believe there is “substantial potential for further growth” in bilateral trade.

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Dogharoun handles 60% of Iran’s exports to Afghanistan

Modoudi invited machinery manufacturing companies in Iran to establish operations in the area.

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Mohammadreza Modoudi, CEO of the Dogharoon Free Zone, has criticized what he described as the neglect of Dogharoun’s potential, saying Iran ranks first among all countries in terms of exports of goods to Afghanistan.

He said 60 percent of this large volume of exports passes through the Dogharoun border crossing, adding that, despite this, the region’s significant potential has been overlooked.

Modoudi invited machinery manufacturing companies in Iran to establish operations in the area.

He said it is time to take a realistic approach and transform Dogharoun from a transit route into a major hub for production, value-chain development and a driving force for international trade.

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EU and FAO launch €5m programme to strengthen Afghanistan’s agrifood sector

FAO Representative in Afghanistan Richard Trenchard said agrifood businesses had shown potential to grow and create jobs despite difficult conditions.

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The European Union (EU) and the Food and Agriculture Organization of the United Nations (FAO) have launched a €5 million initiative to help Afghan farmers and agribusinesses access markets, improve incomes and withstand climate and economic shocks.

The programme will target vulnerable households, including returnees, internally displaced people and host communities, particularly in areas affected by food insecurity, climate risks and limited economic opportunities. Women and youth will be key beneficiaries.

Four one-stop service hubs will connect farmers and rural entrepreneurs with agricultural advice, specialised services, businesses and markets. Farmers will also gain access to FAO climate analysis and early-warning information to help them make timely production and marketing decisions.

The initiative will restore 2,000 hectares of degraded forests and rangelands and support 250 women- and community-led nurseries, combining environmental protection with new livelihood opportunities.

FAO will also provide matching grants and technical and business support to established agrifood and environmentally sustainable enterprises with growth potential. Participating businesses will contribute their own resources, helping expand processing, source from more local farmers and create rural jobs.

Nicola Bellomo, the EU’s new Chargé d’Affaires for Afghanistan, said the programme reflected the EU’s commitment to food security and economic empowerment.

“Afghanistan’s agricultural potential remains undervalued and constrained by the country’s extreme climate vulnerability,” Bellomo said, adding that the partnership would strengthen agricultural services, support agribusiness growth and promote nature-based solutions.

FAO Representative in Afghanistan Richard Trenchard said agrifood businesses had shown potential to grow and create jobs despite difficult conditions.

“When farmers can produce with confidence, businesses can grow and products can reach markets, agriculture becomes a powerful engine for recovery and resilience,” he said.

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UAE firm eyes investment in Salang’s second tunnel and pharmaceutical factories

The proposals will be submitted to the Inter-Ministerial Investment Committee for further review and discussion.

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A United Arab Emirates-based company, HHM Global Industry Group, has expressed interest in investing in the construction of the second Salang Tunnel and establishing pharmaceutical factories in Afghanistan.

The issue was discussed at a regular meeting of the Inter-Ministerial Investment Committee, held on September 8, 2026, at the Marble Palace under the Economic Deputy Office of the Prime Minister’s Office.

The committee welcomed the company’s interest in investing in Afghanistan and assured its representatives that the relevant ministries and government agencies are prepared to provide comprehensive cooperation.

Following extensive discussions, company officials were asked to prepare detailed investment proposals for the construction of the second Salang Tunnel, pharmaceutical manufacturing facilities, as well as other potential investment projects.

The proposals will be submitted to the Inter-Ministerial Investment Committee for further review and discussion.

If implemented, the proposed investments could contribute to the development of Afghanistan’s transport infrastructure and strengthen domestic pharmaceutical production.

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