Business
Cost of Trans-Afghan railway project estimated at $7 billion
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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Business
Trans-Afghan Railway cost surges to over $7 billion as regional interest grows
The project includes approximately 760 kilometers of new railway construction inside Afghanistan, between Mazar-e Sharif and Torkham.
The estimated cost of the proposed Trans-Afghan Railway linking Uzbekistan, Afghanistan and Pakistan has risen to more than $7 billion, according to Uzbek Deputy Minister of Transport Jasurbek Choriyev.
Speaking at the Tashkent International Investment Forum on June 18, Choriyev said the updated figure reflects ongoing technical assessments and the evolving scope of the project. Earlier estimates had placed the cost at around $4.8 billion.
He noted that a detailed feasibility study for the strategic railway is currently underway and is expected to be completed by the end of 2026.
Strategic regional corridor
The Trans-Afghan Railway is planned to establish a direct rail link from Termez in Uzbekistan through Mazar-e Sharif, Logar, Kharlachi and Torkham in Afghanistan, before continuing into Pakistan and connecting with major ports including Karachi.
The project includes approximately 760 kilometers of new railway construction inside Afghanistan, between Mazar-e Sharif and Torkham.
According to officials, the railway is expected to significantly reduce transport time between Central Asia and Pakistan—from around 35 days to as little as three to five days—while also lowering logistics costs.
Trade and cargo capacity
Choriyev said the railway could handle up to 20 million tons of cargo annually, doubling earlier estimates of 10 million tons.
He added that the corridor would provide Central Asian countries with faster access to global maritime trade routes and strengthen economic links between South Asia, Central Asia and CIS states, where combined trade exceeds $700 billion.
Officials also estimate that container transport costs along the route could be reduced by nearly three times compared to existing logistics pathways.
Financing and international interest
The deputy minister confirmed that several countries, including the United Arab Emirates and Qatar, have expressed interest in participating in the project. The Eurasian Development Bank has also indicated readiness to support financing.
Uzbek officials have been promoting the railway as a long-term strategic infrastructure project aimed at boosting regional connectivity and trade integration. While feasibility work continues through 2026, final investment and construction decisions are expected to follow upon completion of the study.
The project is widely seen as a key component of efforts to transform Afghanistan into a transit hub linking Central and South Asia.
Business
High-level Kazakh delegation arrives in Kabul as Afghanistan, Kazakhstan eye $3 billion trade target
Azizi noted that annual trade between Afghanistan and Kazakhstan currently stands at nearly $600 million, but both governments are working toward increasing bilateral trade to $3 billion in the coming years.
A high-level delegation from Kazakhstan, led by Deputy Prime Minister and Minister of National Economy Serik Zhumangarin, arrived in Kabul on Thursday night for talks aimed at expanding political, economic and trade cooperation between Afghanistan and Kazakhstan.
The visit is expected to focus on strengthening bilateral relations, increasing trade, promoting investment opportunities and enhancing regional economic connectivity.
Welcoming the delegation, Nooruddin Azizi, Afghanistan’s Minister of Industry and Commerce, said the visit reflects the growing partnership between Kabul and Astana and could play a significant role in deepening cooperation across multiple sectors.
According to Azizi, members of the Kazakh delegation are scheduled to meet with senior officials of the Islamic Emirate to discuss a broad range of political, economic and commercial issues. He described the visit as an opportunity to open a new chapter in bilateral relations.
“The presence of this high-level delegation demonstrates the commitment of both countries to expanding cooperation and strengthening long-term economic and political ties,” Azizi said.
Trade volume targeted to reach $3 billion
Azizi noted that annual trade between Afghanistan and Kazakhstan currently stands at nearly $600 million, but both governments are working toward increasing bilateral trade to $3 billion in the coming years.
He said Kazakhstan is currently one of Afghanistan’s major suppliers of wheat, flour and processed agricultural products, while Afghanistan has the potential to significantly expand exports of fresh and dried fruits to the Kazakh market.
According to the minister, Kazakhstan could become one of the most important alternative export destinations for Afghan traders as economic relations continue to develop.
Investment and business opportunities
The Kazakh delegation will also participate in a joint exhibition of Afghan and Kazakh products in Kabul, designed to showcase the production capabilities of both countries, strengthen commercial partnerships and create new opportunities for joint investment.
Azizi emphasized that Afghanistan has created favorable conditions for foreign investment and invited Kazakh businesses to invest in sectors including agriculture, industry, transport, transit and logistics.
He said the Afghan government is prepared to provide the necessary facilities and full support for foreign investors seeking opportunities in the country.
Experts see broader regional significance
Economic experts believe the visit extends beyond trade and investment, carrying important political and regional implications.
They say closer cooperation between Kabul and Astana could strengthen regional connectivity by expanding trade corridors, improving transit and transportation links, boosting agricultural exports and encouraging broader economic integration across Central and South Asia.
The visit comes as Afghanistan and Kazakhstan have steadily expanded cooperation in recent months in areas including trade, transit, cargo transportation, agricultural exports and regional economic initiatives.
Officials from both countries have repeatedly emphasized the importance of increasing bilateral trade, promoting joint investment projects and strengthening economic cooperation. Observers believe the current visit by the senior Kazakh delegation could mark another significant step toward achieving those objectives and advancing the two countries’ shared goal of expanding bilateral trade to $3 billion.
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