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Afghanistan’s oil sector is a source of growing interest among investors: IEA

Afghanistan Chamber of Commerce and Investment (ACCI) officials meanwhile called on the ministry to also focus on increasing the operational capacity of established oil extraction companies and in building refineries instead of focusing on attracting foreign investors.

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Afghanistan’s Ministry of Mines and Petroleum reports that the country’s lucrative oil sector is generating growing interest from a number of countries in the region including Iran, Turkey, Russia and Uzbekistan.

According to officials, companies in these countries have shown serious interest in investing in the extraction and refinement processes.

The ministry has however called on Afghan investors to also take advantage of opportunities in the sector.

Afghanistan’s Crude Oil Refinery Union has meanwhile urged the Islamic Emirate to support local investors in the extraction process but also by establishing refineries that meet international standards.

Afghanistan’s Crude Oil Refinery Union has meanwhile urged the Islamic Emirate to support local investors

Afghanistan Chamber of Commerce and Investment (ACCI) officials meanwhile called on the ministry to also focus on increasing the operational capacity of established oil extraction companies and in building refineries instead of focusing on attracting foreign investors.

Muhammad Younus Mohmand, Vice-Chairman of the ACCI, said: “Our wish is that the refineries that people invest in, in Afghanistan, should be supported.”

According to union officials, over $300 million has already been invested in the sector in the country, providing jobs to thousands of workers.

Working towards self-sufficiency

Despite having over 200,000 square kilometers of oil and gas reserves, Afghanistan currently purchases nearly 90 percent of its oil and gas needs from Central Asian countries and Iran.

But growing interest from companies in the region could mark a significant shift in Afghanistan’s energy sector, potentially reducing its reliance on imports and boosting regional economic ties.

Earlier this month, the ministry of mines and petroleum reported that it had successfully sold $80 million in crude oil.

For Afghanistan this was a major leap in the direction of growth, especially after China’s Xinjiang Central Asia Petroleum and Gas Company’s (CAPEIC) investment in Afghanistan last year of $49 million has helped boost the country’s daily crude oil output to more than 8,000 bpd.

Spanning Afghanistan and Tajikistan, the Amu Darya basin, where oil is extracted, is estimated to contain 962 million barrels of crude oil and 52,025 billion cubic feet of natural gas.

So far, CAPEIC’s investment of $49 million in Afghanistan has helped boost the country’s daily crude oil output to more than 1,100 metric tons (8,000 barrels per day), a volume that could increase significantly.


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Ministry of commerce allocates land for oil refineries


 

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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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