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IEA discusses easing banking transactions with Kazakhstan

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A delegation of the Islamic Emirate of Afghanistan (IEA) discussed facilitating international financial transactions with private banks on a recent trip to Kazakhstan in a bid to ease the Afghan banking sector’s isolation, the acting commerce minister said.

Nooruddin Azizi, acting Minister of Commerce and Industry, led a business delegation to Kazakhstan last week.

In addition to banking he discussed the possibility of preferential trade tariffs, telecommunications projects and transit routes, including for possible shipments of Russian oil to South Asia, he told Reuters in an interview on Wednesday.

“We had teams from Da Afghanistan Bank (Afghanistan’s central bank) and private banks in Kazakhstan, they discussed and are trying to find good ways to decrease the price of financial transactions … we don’t have any banking limitation with Kazakhstan,” he said.

Afghanistan’s banking sector has been hampered and international transactions severely limited since the IEA administration took over two years ago as foreign forces withdrew.

Some IEA leaders are subject to United Nations and United States sanctions. Many international banks have limited transactions with Afghan banks to reduce risk, economists and diplomats say, contributing to a stall in the financial system.

That has been exacerbated by the United States and other governments freezing Afghan central bank assets held abroad.

Azizi also said transactions that went ahead often incurred expensive fees, sometimes 5% of the transaction, which they hoped to reduce.

Fixing Afghanistan’s banking sector was a priority, he said, adding that there are no sanctions directly on banks. But he acknowledged international financial institutions were not easily facilitating transactions.

“It is the preference of some banks that they don’t want to deal with Afghanistan, they might think the trade volume is low, but for us it is very important,” he said.

The United States has issued exemptions to sanctions for humanitarian operations and at times helped facilitate specific transactions, such as an Afghan central bank payment to European companies to buy fresh bank notes.

But traders and international agencies say normal banking has not been restored, hampering the economy and causing headaches for traders and aid programs.

The United Nations, which uses billions of dollars a year to fund humanitarian operations, has to fly in pallets of cash in physical shipments to Kabul.

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Trade body urges urgent government action to restore exports to Afghanistan

In a letter to the Ministry of Commerce and the Federal Board of Revenue’s Directorate General of Transit Trade, Makda reported that thousands of containers carrying bilateral, transit and Central Asian Republic (CARs) cargo remain stuck across Pakistan.

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The Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) has urged the government to immediately intervene as prolonged land port closures have halted exports to Afghanistan and triggered a deepening trade crisis.

PAJCCI President Junaid Makda warned that the shutdown of major crossings has disrupted supply chains, caused widespread unemployment among transporters and labourers, and left hundreds of commercial vehicles stranded at Torkham, Chaman, Ghulam Khan and other points. The paralysis, he said, is inflicting heavy financial damage on both sides of the crossings.

In a letter to the Ministry of Commerce and the Federal Board of Revenue’s Directorate General of Transit Trade, Makda reported that thousands of containers carrying bilateral, transit and Central Asian Republic (CARs) cargo remain stuck across Pakistan, including shipments destined for Afghanistan, Uzbekistan and other regional markets.

He noted that traders, transporters and clearing agents are facing daily port demurrage and shipping line detention charges of $150–200 per container, pushing many to the brink of financial collapse.

Makda stressed that Pakistan–Afghanistan bilateral and transit trade has the potential to exceed $5 billion annually. However, repeated disruptions and the current port closures have pushed trade volumes below $1 billion, raising concerns over revenue losses and long-term economic stability.

“While PAJCCI fully supports Pakistan’s national security imperatives, it is distressing to see the severe economic hardship faced by those whose livelihoods depend on this trade,” he said.

He added that PAJCCI’s chapters in Pakistan and Kabul are coordinating closely and prepared to assist in resolving the crisis.

PAJCCI has urged authorities to prioritize the movement of Afghan commercial cargo, reopen all trade gates with Afghanistan, introduce a relief mechanism for affected businesses, and grant a full waiver of demurrage and detention charges under the exceptional circumstances.

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Afghanistan urges major Iranian companies to boost investment and trade ties

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Afghanistan has called on major Iranian companies to increase their presence in the country, stressing that deeper economic cooperation is essential to unlocking the full potential of bilateral trade and investment.

The appeal came during a meeting in Kabul between a visiting delegation from Iran’s Chamber of Commerce and senior officials from the Afghanistan Chamber of Commerce and Investment (ACCI), attended by Iran’s ambassador to Afghanistan.

The discussions centered on three core pillars of economic cooperation — investment, exports, and transportation — areas in which both sides acknowledged progress has been limited despite longstanding cultural and commercial ties. Afghan officials said that while companies from other countries have invested robustly in Afghanistan, Iran’s private sector engagement remains “disappointingly low,” particularly considering the two nations’ shared borders and historical links.

Participants noted that major export opportunities remain untapped, largely due to infrastructure gaps, especially in logistics and transport. Strengthening cooperation between the private sectors of both countries, they said, is essential to addressing these weaknesses.

Officials urged the chambers of commerce to take a more proactive role in solving issues “online and in real time” to prevent economic initiatives from stalling.

Iran’s ambassador in Kabul, Alireza Bigdeli, highlighted the cultural, historical, and religious commonalities between the two nations and urged the business communities to use their geographical proximity to build a strong, mutually beneficial economic partnership.

Niloofar Asadi, Director-General for Asia and Oceania at Iran’s Chamber of Commerce, said Tehran is drafting a strategic roadmap to elevate economic ties with Afghanistan, calling the strengthening of this relationship a top priority.

Other Iranian officials pointed to specific opportunities. Alireza Khamehzarr, head of the Birjand Chamber, urged an expansion of Iranian imports from Afghanistan—particularly agricultural products—while addressing the legal hurdles that continue to impede trade. Mahmoud Siyadat, head of the Iran–Afghanistan Joint Chamber, stressed the need for mechanisms that ensure agreements lead to measurable results.

Hamidreza Salehi, chairman of Iran’s Energy Federation, warned that insufficient infrastructure remains a major barrier to growth. He cited Iran’s strong LPG production and Afghanistan’s high demand as a clear opportunity that requires better planning and coordination. Salehi and others advocated for joint investment structures that bring together private-sector partners from both countries.

Afghan commerce and investment officials presented details of major development plans, including roughly $10 billion worth of projects currently under preparation. They urged established Iranian companies to take advantage of these opportunities, especially as both governments review border issues and prioritize improving conditions in adjacent provinces to ease movement of goods and investment.

Karim Hashimi, president of the Afghanistan Chamber of Commerce and Investment, said Afghanistan’s government strongly supports private-sector activity and emphasized that both ACCI and the Chamber of Industries and Mines operate independently and actively.

Building trust, he said, is essential for future cooperation. He proposed that partnerships between companies introduced through the chambers of commerce of both countries be given priority, describing this as a reliable safeguard for secure and productive business engagement.

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Afghanistan records $580m in fruit exports in six months

The Economic Deputy noted that exports moved through both land routes and air corridors, a strategy that has improved delivery times and expanded access to global markets.

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Afghanistan exported more than $580 million worth of fresh and dried fruits in the first six months of the current year, according to the Economic Deputy of the Prime Minister’s Office — a surge that underscores the country’s growing agricultural export capacity.

India, Russia, China, Uzbekistan, Saudi Arabia, Kazakhstan, Qatar, Iran, Iraq, the United Arab Emirates, Pakistan, Tajikistan, and several other countries were among the major importers of Afghan produce.

Key export items included figs, pistachios, almonds, pine nuts, walnuts, raisins, grapes, apricots, pomegranates, apples, melons, watermelons, pears, cherries, and a variety of other fruits.

The Economic Deputy noted that exports moved through both land routes and air corridors, a strategy that has improved delivery times and expanded access to global markets.

The statement also highlighted that the expansion of Afghanistan’s railway network, the reconstruction of major highways, and the reactivation of international air corridors have been instrumental in boosting export levels and strengthening the country’s transit capacity.

This progress comes as Afghan traders continue to emphasize that greater investment in transit infrastructure could open additional markets and substantially increase the nation’s export potential.

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