Business
Afghanistan pushes ahead with railway expansion to boost connectivity
Iranian media have reported that a passenger rail service connecting Herat to Mashhad may become operational soon, a development that would mark a milestone in cross-border connectivity.
The Ministry of Public Works has announced the acceleration of multiple railway projects across Afghanistan, aimed at strengthening the country’s transportation infrastructure and building towards becoming a key transit corridor in Central and South Asia.
According to ministry spokesperson Mohammad Ashraf Haqshenas, survey work is currently underway for critical railway lines, including the Herat–Kandahar route and rail extensions in Balkh, Paktia, and Torghundi.
These efforts are part of a broader plan to interconnect Afghanistan’s major border crossings with a unified rail system that will significantly facilitate trade, mobility, and economic growth.
Afghanistan’s private sector has voiced strong support for the rail expansion initiative, emphasizing its potential to increase exports, boost national revenues, and attract foreign investment.
Business leaders believe the completion of these projects will mark a turning point in the country’s ability to participate in regional supply chains and improve internal logistics.
Construction is already underway on the third phase of the Khaf–Herat railway line in the west of the country. This key corridor, which links Afghanistan with neighboring Iran, is expected to facilitate both freight and passenger transport.
Iranian media have reported that a passenger rail service connecting Herat to Mashhad may become operational soon, a development that would mark a milestone in cross-border connectivity.
Simultaneously, preparations have begun for the launch of the Trans-Afghan railway corridor, a strategic project that aims to connect Uzbekistan to Pakistan via Afghanistan.
Once completed, this route will play a vital role in boosting regional trade, shortening cargo transit times, and offering landlocked Central Asian countries access to seaports.
These developments are part of Afghanistan’s broader effort to reposition itself as a regional trade and transit hub, linking Central Asia, South Asia, the Middle East, and beyond. The current government has prioritized infrastructure revival, focusing on key corridors such as the Lapis Lazuli Route, the Chabahar Corridor, and the Trans-Afghan Railway.
Despite ongoing economic challenges, Afghan officials remain committed to transforming the country into a bridge between continents, tapping into its geographic advantage and untapped transit potential. The expansion of the rail network is central to this vision, offering new hope for economic self-reliance and regional integration.
Business
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.
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.
Business
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.
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.
Business
Saudi energy group signs major Afghanistan deals covering gas exploration and pipeline plans
The agreements cover exploration across the Kushk and Tirpul contract area in Herat, spanning approximately 23,317 square kilometers.
Saudi Arabia’s Delta Energy Group has signed a series of agreements with Afghanistan’s Ministry of Mines and Petroleum covering hydrocarbon exploration, natural gas utilization in Herat and a proposed regional gas pipeline.
According to a statement issued by Delta Energy on September 6, the agreements cover exploration across the Kushk and Tirpul contract area in Herat, spanning approximately 23,317 square kilometers.
Under the agreements, Delta Energy will conduct geological and geophysical studies, seismic surveys, exploration drilling and reservoir evaluations to determine the scale and commercial potential of Afghanistan’s hydrocarbon resources.
The company will also finance a study on the utilization of natural gas for Herat Industrial Park, Herat city and other approved areas, including potential applications in industry and power generation.
A separate agreement provides a framework to assess the proposed 700-kilometre CentGas “Corridor of Prosperity” pipeline, which would potentially connect a gas receipt point near Guzara district in Herat with a delivery point near Spin Boldak in Kandahar.
Delta Energy estimates the proposed pipeline could require about $10 billion in investment over 10 years, subject to technical and economic feasibility, financing, regulatory approvals and a final investment decision.
The company said the broader integrated programme could represent tens of billions of dollars in potential investment over the coming years, covering exploration, field development, gas utilization and related infrastructure. However, all subsequent phases will depend on exploration results, commercial viability, financing and required approvals.
Sheikh Badr Mohammed Al-Aiban, chairman of Delta International Holding Group, said the project was more than an oil and gas investment, describing it as an opportunity to develop an integrated energy ecosystem that could create jobs, support industry and improve regional connectivity.
Afghanistan’s Minister of Mines and Petroleum, Hidayatullah Badri, welcomed the agreements, saying cooperation with Delta Energy could help advance exploration of the country’s hydrocarbon resources, strengthen energy security and support economic activity.
-
Latest News4 days agoUN warns of mounting humanitarian and human rights pressures in Afghanistan
-
Regional4 days agoSaudi Arabia calls alleged Mecca attack a ‘red line’ as Houthis deny involvement
-
Latest News5 days agoUNICEF expands aid to millions of Afghan children after flash floods
-
Latest News5 days agoPetition filed in Islamabad High Court against PMDC directive affecting Afghan students
-
Latest News4 days agoFive Years On: IEA touts economic growth despite international isolation
-
Sport4 days agoIndia take 2-0 lead in 3-match series against Afghanistan
-
Latest News5 days agoAfghanistan, India explore cooperation on medical supplies, food and drug quality
-
Sport5 days agoNabi reaches 2,500 T20I runs
