Business

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.

Published

2 years ago

June 20, 2024

Ariana News

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

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.

Ministry of commerce allocates land for oil refineries

Up Next

Fresh fruit exporters in Nangarhar concerned about exporting goods to Pakistan

Don't Miss

Afghan ministry of commerce meets with stakeholders to build a refinery

Business

Kazakhstan reports 2.3-fold rise in grain exports to Afghanistan

Published

12 hours ago

May 23, 2026

Ariana News

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.

Business

Fifth section of Hairatan–Mazar-i-Sharif railway reopens in northern Afghanistan

Published

2 days ago

May 21, 2026

Ariana News

Mullah Abdul Ghani Baradar, the Deputy Prime Minister for Economic Affairs, on Thursday officially reopened the fifth section of the Hairatan–Mazar-e-Sharif railway line in northern Balkh province, marking another step in Afghanistan’s efforts to expand its rail infrastructure and regional trade connectivity.

Speaking at the reopening ceremony, Baradar praised the Ministry of Public Works for its efforts in developing Afghanistan’s railway network and expressed appreciation for Uzbekistan’s cooperation in the project.

He said economic and commercial ties between Afghanistan and Uzbekistan have strengthened significantly in recent years, adding that a joint committee led by the governor of Balkh and involving relevant institutions has been established to further enhance bilateral cooperation.

Officials said the newly reopened section of the railway is 70 kilometers long and includes 30 kilometers of branch lines, five railway stations, and the capacity to unload up to 50 wagons simultaneously.

The government said the reopening of the railway section is expected to improve the transportation of commercial goods, increase trade volume, and facilitate regional economic connectivity between Afghanistan and neighboring countries.

The Hairatan–Mazar-e-Sharif railway is considered one of Afghanistan’s most important trade corridors, linking the country to Central Asia through Uzbekistan.

Business

Kabul, Tashkent push industrial cooperation with planned factory transfers

The talks focused on strengthening collaboration in the light industry sector and making use of Uzbekistan’s experience in manufacturing and industrial development.

Published

2 days ago

May 21, 2026

Ariana News

Afghanistan and Uzbekistan have discussed the transfer of 20 light industry factories to Afghanistan as part of efforts to deepen economic cooperation and expand industrial investment between the two countries.

According to Afghanistan’s Ministry of Industry and Commerce, the discussions took place during a bilateral meeting between Nooruddin Azizi, Afghanistan’s Minister of Industry and Commerce, and Nozimjon Kholmurodov, head of the Light Industry Development Agency under Uzbekistan’s Council of Ministers, along with their respective delegations.

The talks focused on strengthening collaboration in the light industry sector and making use of Uzbekistan’s experience in manufacturing and industrial development.

Key topics included standard cotton cultivation in Afghanistan, cotton processing and yarn production, as well as the relocation of cotton processing, leather and cashmere factories from Uzbekistan to Afghanistan. The two sides also discussed the production of leather boots and textiles in Afghanistan and the export of Uzbek-made garments to Afghan markets.

Officials further reviewed plans for transferring 20 factories from Uzbekistan to Afghanistan across various industrial sectors.

Discussions also covered organizing a specialized international light industry exhibition at the Termez joint market and promoting joint investment in Afghanistan’s yarn production industry.

At the conclusion of the meeting, both sides introduced technical and liaison teams tasked with following up on the implementation of the agreed initiatives.