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Cotton factories ‘owed’ $30 million by Pakistan: Kandahar Chamber

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Owners of cotton processing factories in Kandahar said this week that Pakistan is holding back about $30 million dollars owed to the sector in a bid to put them out of business.

According to Sayed Sarwar Amani, the head of the Kandahar Chamber of Commerce and Industries, due to restrictions on banking, Pakistan has failed to pay about $30 million owed to factories in the province.

“Our banking system is defective, we have problems, the banking remittances are closed, especially Pakistan is using this unfairly, it means that a lot of money from our cotton sector which is about $30 million is blocked in Pakistan.

“I can say that they are not paying us the money of 24 factories by referral nor through the banking system nor by TT (telegraphic transfer),” Amani said.

There are 24 cotton processing factories in Kandahar which processed approximately 400,000 tons of cotton last year.

However, due to the challenges faced by the sector, this has dropped to only about 200,000 tons this year.

Chamber officials said Pakistan is trying to create problems for the owners of these factories in order to put them out of business.

Factory owners meanwhile said that a shortage of electricity to their industrial parks was also a major challenge.

Yar Mohammad Rahmani, the owner of one cotton factory, said: “Our main problem is electricity, before the coming of the Islamic Emirate we used to have generators here with 10-Megawatt electricity but we don’t have that now; now we are using solar power and (electricity generated from) Kajaki Dam,” he said adding that factories in the industrial plant got electricity only on alternate days.

Power “is provided one day to the north side of the park and one day to the south, I can say that electricity is our main problem,” he said.

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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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