Business
IEA discusses easing banking transactions with Kazakhstan
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.
Business
Afghanistan approves new foreign investment policy in bid to attract international investors
The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.
Afghanistan’s Economic Commission has approved a new foreign investment policy aimed at attracting international investors, improving investment opportunities and supporting the country’s economic growth.
The decision was made during the commission’s regular meeting, chaired by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, at the Marble Palace on Monday.
According to the Deputy Prime Minister’s Office for Economic Affairs, the proposed policy was presented by a committee established under the leadership of the economic deputy office. Following a comprehensive review and consideration of the commission’s recommendations, the policy was approved.
The policy aims to regulate foreign investment activities, facilitate investment procedures, create a favourable environment for investors, ensure investment security and promote Afghanistan’s economic growth and development.
During the meeting, the commission also approved a proposal concerning the payment of fixed taxes by commercial import companies at the country’s customs offices.
Officials said implementing the proposal would create additional facilities and simplify procedures for importing businesses.
The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.
Business
Afghanistan and Iran discuss boosting trade and investment ties
Both sides agreed to follow up on the issues raised, improve coordination between relevant economic institutions and work towards removing barriers to trade.
Afghanistan and Iran have held talks on expanding bilateral trade, improving cross-border commerce and creating new investment opportunities for businesses in both countries.
The discussions took place during a meeting between a trade delegation from Afghanistan’s Kandahar province and representatives of the Iran-Afghanistan Joint Chamber of Commerce.
The Afghan delegation was led by Kamaluddin Tawhid, Chairman of the Afghanistan-Iran Joint Chamber of Commerce, who met with his Iranian counterpart, Mahmoud Seyadat, along with members of the chamber’s board of directors. Afghanistan’s Consul General in Mashhad, Noor Mohammad Mutawakkil, also attended.
The talks focused on strengthening economic cooperation, streamlining trade procedures at ports and border crossings, and encouraging joint investment by Afghan and Iranian companies.
Participants also raised several practical obstacles affecting commercial activities, including foreign exchange obligations, visa arrangements for Afghan truck drivers and the movement of Afghan freight vehicles through Iranian territory.
Tawhid highlighted Kandahar’s economic potential and investment opportunities across Afghanistan, urging Iranian businesses to play a greater role in the country’s economy.
He also pointed to investment opportunities identified by Afghanistan’s Ministry of Industry and Commerce, stressing the need for improved facilities for private-sector businesses and closer cooperation between the two countries’ commercial communities.
Both sides agreed to follow up on the issues raised, improve coordination between relevant economic institutions and work towards removing barriers to trade.
The meeting concluded with a commitment to strengthen commercial exchanges and expand trade and investment relations between Afghanistan and Iran.
Business
UK-Afghanistan trade falls 16.7% to £70 million over 12 months
Trade in goods and services between the United Kingdom and Afghanistan declined by 16.7 percent to £70 million in the 12 months to the end of June 2026, according to the latest figures published by the UK Department for Business and Trade.
The department’s trade and investment factsheet, released on November 6, shows that bilateral trade fell by £14 million compared with the same period a year earlier.
UK exports to Afghanistan totalled £57 million, down 18.6 percent or £13 million, while imports from Afghanistan stood at £13 million, representing a 7.1 percent decline.
The figures show that goods accounted for £32 million, or 45.7 percent, of total trade, while services made up the remaining £38 million, or 54.3 percent.
UK exports to Afghanistan included beverages, pharmaceutical products, dairy products, road vehicles and industrial machinery.
Vegetables and fruit were the leading Afghan goods exports to the UK, worth £1.7 million. Clothing and textile fabrics were also among the main products exported.
The report ranks Afghanistan as the UK’s 166th-largest trading partner, accounting for less than 0.1 percent of the UK’s total trade during the period.
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