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Cost of Trans-Afghan railway project estimated at $7 billion

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Uzbekistan, Afghanistan and Pakistan estimate the cost of construction of the Trans-Afghan railway at almost $7 billion, Kun.uz News Agency reported on Thursday.

Recently, the head of the Ministry of Transport, Ilkhom Mahkamov, held negotiations in Pakistan with local industry departments and large transport and logistics companies NLC-Logistics and TCS, the agency added.

The Uzbekistan-Afghanistan-Pakistan railway construction project can be implemented through a PPP in the Build-Operate-Transfer format.

The parties also agreed to develop multimodal transportation along the Trans-Afghan corridor, reduce transportation fees, simplify cargo transportation and speed up the construction of a railway through Afghanistan.

The Trans-Afghan Highway initiative was launched in 2018. At that time, the project with an annual transportation potential of 20 million tons of cargo was estimated at $5 billion.

Based on Kun.uz news agency report in July 2022, Uzbekistan Railways shared “Boshtransloyikha” calculations. The institute put the estimated cost of building the railway at $4.6 billion, and the project will take 5 years to complete.

Last December, Pakistan estimated the construction of the railway between Pakistan and Uzbekistan at $8.2 billion.

This comes after a trilateral trade meeting between Afghanistan, Pakistan and Uzbekistan was held in Islamabad on Tuesday and the participants emphasized the need to strengthen economic relations between the three countries.

The meeting was attended by Nuruddin Azizi, Acting Minister of Industry and Commerce of Afghanistan, Gohar Ejaz, Minister of Commerce of Pakistan, and Jamshid Khodjaev Abdukhakomovich, Deputy Prime Minister of Uzbekistan.

The Afghan Embassy in Islamabad said that discussions centered around advancing the trans-Afghan railway project, trilateral transit and trade, challenges to regional connectivity and other matters.

The minutes of the meeting, which was signed between these countries, focused on strengthening trilateral economic relations and regional connectivity through trade development, more transit facilities, increasing joint investments, reducing costs, transportation facilities, digitalization of customs systems, strengthening and expanding the banking system, food security, issuing visas, and also solving transit problems and strengthening trilateral transit.

“This is a significant step towards strengthening of economic ties and regional connectivity. Bright prospects for trade, investment, and connectivity lie ahead for mutual benefit of three countries,” Gohar Ejaz, the Minister of Commerce of Pakistan, said on X.

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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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Afghanistan, Kazakhstan envoys discuss expanding trade and regional connectivity

Ambassador Shakeeb thanked Kazakhstan for its continued support and constructive engagement with Afghanistan, particularly in efforts aimed at peace and economic development.

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Afghanistan’s Ambassador to Pakistan, Sardar Ahmad Shakeeb, has met with Kazakhstan’s Ambassador to Pakistan, Yerzhan Kistafin, to explore ways to strengthen bilateral relations and advance regional cooperation.

The two envoys exchanged views on Afghanistan–Kazakhstan ties, regional connectivity, and major infrastructure initiatives, as well as the opportunities and challenges facing regional trade. Discussions also touched on Kazakhstan’s role in promoting regional stability and other matters of mutual interest.

Ambassador Shakeeb thanked Kazakhstan for its continued support and constructive engagement with Afghanistan, particularly in efforts aimed at peace and economic development.

He expressed hope that the proposed $3 billion joint trade agreement, once finalized, would bring tangible benefits to both countries and contribute to broader regional economic integration.

Ambassador Kistafin reaffirmed Kazakhstan’s support for stability and economic growth in Afghanistan, highlighting his country’s involvement in key regional connectivity and trade projects.

He said the current security and stability situation in Afghanistan has increased Kazakhstan’s confidence in expanding regional trade and transit, and praised the efforts of the Islamic Emirate in this regard.

He also stressed the need for coordinated regional efforts to ensure lasting stability, sustainable economic development, and the smooth movement of goods and transit across the region.

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Mahirood Customs leads Iran’s exports to Afghanistan

More than 1.5 million tonnes of goods were exported to Afghanistan through the border crossing during this period.

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Mahirood Customs in South Khorasan province has become Iran’s main export gateway to Afghanistan, accounting for 36 percent of the country’s total exports to its eastern neighbor, Iranian officials said.

South Khorasan Governor Seyed Mohammadreza Hashemi told local media that Mahirood ranked first among Iran’s 71 active customs points during the first eight months of the current Iranian year.

More than 1.5 million tonnes of goods were exported to Afghanistan through the border crossing during this period.

Official customs figures show that Iran’s total exports to Afghanistan exceeded 4.26 million tonnes in the first eight months of the year, with Mahirood handling the largest share, Hashemi said.

He attributed the strong performance to South Khorasan’s strategic location, improved border infrastructure, effective planning, close cooperation with traders, and coordinated efforts by government agencies.

Hashemi said the expansion of exports via Mahirood Customs is contributing to economic growth, job creation, and stronger economic diplomacy for the province.

He added that continued support for exporters and streamlined customs procedures could further increase South Khorasan’s share of the Afghan market and other target markets in the future.

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