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Afghanistan urges major Iranian companies to boost investment and trade ties

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Afghanistan has called on major Iranian companies to increase their presence in the country, stressing that deeper economic cooperation is essential to unlocking the full potential of bilateral trade and investment.

The appeal came during a meeting in Kabul between a visiting delegation from Iran’s Chamber of Commerce and senior officials from the Afghanistan Chamber of Commerce and Investment (ACCI), attended by Iran’s ambassador to Afghanistan.

The discussions centered on three core pillars of economic cooperation — investment, exports, and transportation — areas in which both sides acknowledged progress has been limited despite longstanding cultural and commercial ties. Afghan officials said that while companies from other countries have invested robustly in Afghanistan, Iran’s private sector engagement remains “disappointingly low,” particularly considering the two nations’ shared borders and historical links.

Participants noted that major export opportunities remain untapped, largely due to infrastructure gaps, especially in logistics and transport. Strengthening cooperation between the private sectors of both countries, they said, is essential to addressing these weaknesses.

Officials urged the chambers of commerce to take a more proactive role in solving issues “online and in real time” to prevent economic initiatives from stalling.

Iran’s ambassador in Kabul, Alireza Bigdeli, highlighted the cultural, historical, and religious commonalities between the two nations and urged the business communities to use their geographical proximity to build a strong, mutually beneficial economic partnership.

Niloofar Asadi, Director-General for Asia and Oceania at Iran’s Chamber of Commerce, said Tehran is drafting a strategic roadmap to elevate economic ties with Afghanistan, calling the strengthening of this relationship a top priority.

Other Iranian officials pointed to specific opportunities. Alireza Khamehzarr, head of the Birjand Chamber, urged an expansion of Iranian imports from Afghanistan—particularly agricultural products—while addressing the legal hurdles that continue to impede trade. Mahmoud Siyadat, head of the Iran–Afghanistan Joint Chamber, stressed the need for mechanisms that ensure agreements lead to measurable results.

Hamidreza Salehi, chairman of Iran’s Energy Federation, warned that insufficient infrastructure remains a major barrier to growth. He cited Iran’s strong LPG production and Afghanistan’s high demand as a clear opportunity that requires better planning and coordination. Salehi and others advocated for joint investment structures that bring together private-sector partners from both countries.

Afghan commerce and investment officials presented details of major development plans, including roughly $10 billion worth of projects currently under preparation. They urged established Iranian companies to take advantage of these opportunities, especially as both governments review border issues and prioritize improving conditions in adjacent provinces to ease movement of goods and investment.

Karim Hashimi, president of the Afghanistan Chamber of Commerce and Investment, said Afghanistan’s government strongly supports private-sector activity and emphasized that both ACCI and the Chamber of Industries and Mines operate independently and actively.

Building trust, he said, is essential for future cooperation. He proposed that partnerships between companies introduced through the chambers of commerce of both countries be given priority, describing this as a reliable safeguard for secure and productive business engagement.

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Tajik investors express interest in cement production in Afghanistan

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A delegation of Tajikistani investors has expressed interest in establishing a cement production factory in Afghanistan, signaling renewed economic engagement between the two neighbors after four years of limited activity.

The delegation met with Hedayatullah Badri, Afghanistan’s Minister of Mines and Petroleum, to discuss potential investment opportunities in the country’s mining and industrial sectors. Officials said the visit reflects Tajikistan’s increasing willingness to expand economic cooperation with Afghanistan.

During the meeting, the Tajik investors praised the Islamic Emirate for what they described as improved security and a more conducive investment environment across Afghanistan.

Minister Badri welcomed the investors’ proposal and assured them of the government’s full support, emphasizing that Afghanistan is ready to facilitate investment through streamlined procedures and favorable conditions.

Representatives of Afghanistan’s private sector also view the development as a positive step toward strengthening bilateral economic ties.

Abdul Jabbar Safi, head of the Afghanistan Industries Association, said:
“After four years, Tajikistan is looking to take part in Afghanistan’s economic sector. This is encouraging news for the governments and the people of both countries.”

Economic experts believe that deeper economic engagement between Afghanistan and Tajikistan could unlock significant mutual benefits.

Nazir Ahmad Khalil, an economic analyst, said: “Tajikistan and Afghanistan share language, culture and geography. Expanding trade and investment between the two countries can meaningfully improve their economic situations. Building trust will be essential for long-term cooperation, and such investment can play a major role in poverty reduction and confidence-building.”

This new chapter of economic cooperation between Afghanistan and Tajikistan comes at a time when, since the return of the Islamic Emirate to power, several major projects have been launched between Afghanistan and Central Asian states.

The leadership of the Islamic Emirate has repeatedly emphasized that it seeks to strengthen economic relations with neighboring countries, the region, and the wider world on the basis of mutual respect.

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Trade bodies warn almost 11,000 Afghan transit containers stuck at Karachi port

SCCI officials urged authorities to separate trade from political tensions and immediately launch dialogue to restore commercial traffic between the two countries.

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Trade bodies report that nearly 11,000 Afghan transit trade containers are stranded at Karachi port, while thousands more— including shipments of perishable goods—remain stuck at the Ghulam Khan, Spin Boldak, Kharlachi, and Torkham crossings between Afghanistan and Pakistan.

Traders involved in Pakistan–Afghanistan bilateral and transit commerce say they have suffered billions of Pakistani rupees in losses as the prolonged border shutdown continues to stall the movement of goods. Perishable food items have already begun to spoil, compounding financial losses.

They also report a sharp drop in bilateral trade volumes. Exporters who were already issued Form-E certificates have been unable to dispatch consignments, with the closure now nearing two months.

Sarhad Chamber of Commerce and Industry (SCCI) President Junaid Altaf said trade—already limited—has deteriorated further due to the closure of crossings. He estimated losses of roughly $45 million since the Torkham closure began, adding that the halt is damaging for both economies and directly affecting families whose livelihoods depend on trade.

SCCI officials urged authorities to separate trade from political tensions and immediately launch dialogue to restore commercial traffic between the two countries.

In recent weeks, repeated closures of the Pakistan–Afghanistan crossing have also brought pharmaceutical exports to a halt, putting nearly $200 million worth of medicines at risk. Hundreds of trucks carrying antibiotics, insulin, vaccines, and cardiovascular drugs remain stuck at Torkham and Chaman, with temperature-sensitive supplies facing potential spoilage.

The Pakistan Pharmaceutical Manufacturers Association (PPMA) warned that the disruption extends far beyond Afghanistan’s medicine supply. Afghanistan is Pakistan’s main overland route to Uzbekistan, Tajikistan, Turkmenistan, and Kazakhstan, and ongoing shutdowns are undermining key regional connectivity projects, including the Pakistan–Uzbekistan–Afghanistan railway.

Stakeholders are calling for urgent steps to reopen the crossings, warning that prolonged closures threaten not only pharmaceutical exports but Pakistan’s broader economic engagement across the region.

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Pakistan’s citrus export crisis deepens amid ongoing Afghanistan trade route closure

Afghanistan, which absorbs around 60% of Pakistan’s citrus exports, has remained closed to trade since mid-October.

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Pakistan’s citrus sector is facing a worsening export crisis as the closure of the Afghanistan crossing continues to block access to its largest market.

Despite the start of the 2025 citrus season, exports are set to fall further from an already steep decline — dropping from $211 million in fiscal year 2021 to just $92.5 million in fiscal year 2025.

Afghanistan, which absorbs around 60% of Pakistan’s citrus exports, has remained closed to trade since mid-October.

This year alone, Pakistan shipped 153,683 tonnes of citrus to Afghanistan, while exports through the Afghan transit route also supply Russia, Kazakhstan, and Uzbekistan. With that corridor shut, exporters warn that the bulk of Pakistan’s kinnow harvest could go unsold.

A temporary policy exemption now allows citrus shipments to transit through Iran, but exporters say volumes to Central Asia and Russia cannot compensate for the loss of the Afghan market.

The crisis, however, goes deeper than the current crossing closure situation. Pakistan’s citrus industry continues to suffer from long-standing structural challenges — including reliance on the outdated, seeded kinnow variety that makes up over 90% of exports.

Climate change, rising pest pressure, shrinking yields, and declining A-grade fruit quality have all eroded competitiveness. Yields have fallen to about six tonnes per acre, and nearly half of kinnow processing units have closed.

Global competitors such as Egypt, China, Spain, Morocco, and Brazil have overtaken Pakistan by introducing new seedless, high-yielding varieties with longer harvest windows. As profits shrink, farmers are abandoning citrus orchards: the cultivated area has dropped 16% in the past five years.

Experts say Pakistan must urgently invest in developing seedless, climate-resilient varieties and strengthen existing research centres. At the same time, trade officials need to diversify export destinations by securing new sanitary and phytosanitary agreements to reduce dependence on a single market.

Without structural reforms and diversified access, Pakistan’s signature fruit risks losing its place in global markets — and its farmers risk losing their livelihoods.

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