Business
Conference on Islamic microfinance kicks off in Kabul
The four-day conference will discuss topics related to Islamic finance in Afghanistan, microfinance, job creation, poverty reduction, and financial inclusion.
A conference focusing on Islamic microfinance under the title ‘Islamic Finance Week of Afghanistan’ got underway in Kabul on Monday.
The conference, organized by the United Nations Development Program (UNDP) has brought together representatives of Da Afghanistan Bank (DAB), the Ministry of Industry and Commerce, UNAMA, ambassadors from some countries, representatives of the private sector, commercial banks, microfinance institutions, and representatives of various other financial and banking institutions, DAB said in a statement.
The four-day conference will discuss topics related to Islamic finance in Afghanistan, microfinance, job creation, poverty reduction, and financial inclusion.
Sidiqullah Khalid, the Director General of the Governor’s Office of DAB, said that despite many challenges, the Islamic banking sector is still in a developing and stable condition.
He added that guidelines and frameworks for transitioning from conventional banking to Islamic banking, adapted to Afghanistan’s conditions, have been developed by utilizing the experiences of other Islamic countries.
According to him, the level of public trust in banks is increasing day by day, and significant steps will be taken soon in the area of financial development.
“DAB has relations with several international institutions that work in the field of Islamic finance and banking, and DAB will also utilize the standards, financial products, and training programs of these international institutions, along with the experiences of other Islamic countries, to further strengthen the Islamic banking in the country,” he said.
Khalid also stated that microfinance institutions play an important role in diversifying financial products, particularly in providing access to financial products for small businesses, agricultural growth for farmers, facilitating business opportunities for small entrepreneurs, reducing poverty levels, creating job opportunities, and overall contributing to the economic growth and development of the country.
He added that the bank has developed and finalized a framework for the regulation and supervision of this sector. Individuals in all provinces of the country who wish to provide services to the citizens through microfinance institutions can obtain a license from DAB.
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Business
IEA urges Afghan traders to cut reliance on Pakistan, citing repeated crossing closures
The decision comes amid escalating trade tensions between Kabul and Islamabad and the recurring shutdown of key crossings by Pakistan.
The Islamic Emirate of Afghanistan (IEA) has urged Afghan traders to reduce their dependence on Pakistan for trade and transit, citing repeated crossing closures and Islamabad’s use of “non-political issues as political tools.”
Addressing a press conference on Wednesday, Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, said that Pakistan has repeatedly obstructed Afghanistan’s trade routes, causing significant economic disruptions.
“In order to safeguard national dignity, economic interests, and the rights of our citizens, Afghan traders should minimize their trade with Pakistan and seek alternative transit routes,” Baradar said.
He emphasized that imports from Pakistan should be redirected to other markets and countries, noting that “many viable alternatives are now available.”
Baradar also instructed that all pharmaceutical imports should come from other countries and called on Afghan businessmen to close their financial accounts and end business dealings with Pakistan.
During the same press conference, Minister of Industry and Commerce Nooruddin Azizi revealed that the month-long closure of the Torkham crossing had cost Afghan traders approximately $200 million in losses.
The decision comes amid escalating trade tensions between Kabul and Islamabad and the recurring shutdown of key crossings by Pakistan, which Afghan officials say has been used as leverage in political disputes.
Business
Durand Line crossings closure causes $200 million loss in 24 days
From October 12 to October 31, the first 20 days of the closure caused more than $50 million in direct losses.
The closure of the Durand Line crossings has led to an estimated loss of $200 million within just 24 days, disrupting not only bilateral trade but also Pakistan’s commercial links with Central Asian states. Officials report that the blockade has cost millions of dollars in daily losses since it began in mid-October.
According to an official source, the crossings were shut on October 11 following clashes between the two sides. The closure of all eight crossing points stranded thousands of traders and left goods worth millions of dollars stuck on both sides. Perishable items began to spoil as the impasse continued, prompting traders and business groups to call for urgent dialogue.
From October 12 to October 31, the first 20 days of the closure caused more than $50 million in direct losses, the source told The Nation. By early November, the total losses were estimated near $200 million, as Afghanistan typically imports around $150 million worth of goods from Pakistan each month while exporting about $60 million, The Nation reported.
The shutdown also halted Pakistan’s exports to Central Asian countries, compounding the economic impact. Traders reported daily losses worth millions, with long queues of trucks carrying hundreds of tons of perishable goods waiting at the Durand Line. Around 20,000 to 25,000 workers were affected, while more than 1,000 trucks remained stranded at Karachi port.
The disruption also hit Afghan farmers hard. Agricultural prices plummeted, with a 10-kg box of grapes dropping from 4,500 Pakistani rupees to just 120–140 Afghanis, resulting in further financial strain on growers.
Investor sentiment showed signs of recovery once Pakistan and Afghanistan extended their ceasefire. On October 31, Pakistan’s KSE-100 Index surged by 3.13% (4,898 points) amid optimism that both sides would maintain peace and establish a monitoring mechanism to prevent further disruptions.
Earlier, on October 15, Pakistan had also suspended the processing of Afghan transit consignments to prevent congestion at crossing points, as 584 transit vehicles were already parked or en route toward the Durand Line.
Official data further reveals that Pakistan-Afghanistan bilateral trade declined by 6% to $475 million during the first quarter (July–September) of FY2025–26, compared to $502 million in the same period of FY2024–25. On a year-on-year basis, bilateral trade also dropped 13% in September 2025, down to $177 million from $204 million in September 2024.
Business
Afghanistan, Iran explore expansion of trade and transit via Chabahar Port
Officials described the visit as part of ongoing efforts to strengthen regional cooperation and establish reliable, cost-effective transit corridors for Afghan exports and imports.
The Ministry of Industry and Commerce of the Islamic Emirate of Afghanistan says a technical delegation has completed a visit to Iran to assess transit and trade opportunities, emphasizing the expansion of commercial activity through the strategic Chabahar Port.
Abdul Salam Javad Akhundzada, the ministry’s spokesman, told Afghan Voice Agency (AVA) that the delegation examined Iran’s major transit routes, including the ports of Chabahar and Bandar Abbas, and held meetings with Iranian officials to discuss ways to strengthen trade connectivity between the two countries.
According to Akhundzada, the Afghan team conducted a comprehensive review of port operations, transit facilities, and transportation infrastructure, with its findings shared with Industry and Commerce Minister Nooruddin Azizi.
Azizi praised the delegation’s efforts and reiterated Kabul’s commitment to improving regional trade and logistics. “We are working seriously to expand trade routes and create greater facilities for Afghan traders,” he said, noting that leveraging regional transit opportunities remains a priority for Afghanistan’s economic development.
Officials described the visit as part of ongoing efforts to strengthen regional cooperation and establish reliable, cost-effective transit corridors for Afghan exports and imports.
The renewed focus on Chabahar—seen as a vital alternative to Pakistan’s ports—comes amid the continued closure of key Afghan-Pakistani border crossings due to recent security tensions.
Khan Jan Alokozai, a board member of the Afghanistan Chamber of Commerce and Investment, told AVA that the closures have disrupted trade flows through Pakistan, particularly at Karachi port. He urged that “trade and economic issues should be kept separate from political disputes” to ensure stability in regional commerce.
However, Alokozai added that if tensions with Pakistan persist, Afghanistan will prioritize alternative routes through Iran and Central Asia, including expanding cooperation via Chabahar, which provides access to global markets through the Arabian Sea.
The Chabahar Port, developed with Indian assistance, has long been viewed as a key regional hub offering landlocked Afghanistan a direct maritime link bypassing Pakistan.
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