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Construction of Milk Processing Factory Begins in Kabul

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Last Updated on: October 24, 2022

The foundation stone of a milk processing factory was laid in Kabul during a ceremony on Tuesday.

Speaking at the ceremony, Nasir Ahmad Durrani, the Minister of Agriculture, said the factory will be constructed with the capacity of processing 80,000 liters of milk in 24 hours.

“Seven types of good-quality dairy, namely milk, yogurt, cheese, cream, butter, and dried curd will be produced in the factory,” Minister Durrani said.

He added that the factory is estimated to cost some 3.3 million USD, funded by the International Fund for Agriculture Development (IFAD).

The project will be implemented by the United Nations Food and Agriculture Organization (FAO).

“Upon the operation of the factory, the imports of dairy products will be reduced and this will contribute to the economic growth as well,” Minister Durrani further said.

Statistics from the Ministry of Agriculture show that, on average, 3,000 metric tons of beef and 1,952,000 tons of milk are produced and consumed annually in the country.

Still, with annual exports of cattle skins worth 8.56 million USD and dried curd worth over 200,000 USD, livestock holders have a major share in the total of 15 % of agricultural GDP.

The Minister of Agriculture called the start of the construction of the factory “another stride towards the growth, support and strengthening of livestock” that could help “reduce dairy imports and boost the national economy.”

At the same event, Fabrizio Cesaretti, an official from the FAO said that the construction of the factory will bring positive changes in the life of livestock keepers in the country.

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Pakistan’s kinno exports falter as tensions with Afghanistan continue

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Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.

Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.

Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.

Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.

Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.

Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.

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Pezeshkian pledges to facilitate Iran-Afghanistan trade

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Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.

He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.

Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.

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Afghanistan-Kazakhstan banking ties discussed in Kabul meeting

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A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.

According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.

He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.

Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.

The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.

 
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