Business
IEA hoping to cement strong economic ties with China
The Islamic Emirate of Afghanistan (IEA) has said foreign investors, especially Chinese investors, are welcome to invest in the country and that plenty of opportunities are available.
According to Bilal Karimi, the deputy spokesman for the IEA, China’s economic role in the country is crucial and Afghanistan “welcomes Chinese investment”.
Economic experts meanwhile said Afghanistan-China trade volume currently amounts to $2 billion annually and that China is Afghanistan’s third-largest foreign economic partner.
As one of the world’s largest economies, China has said it is hoping to help Afghanistan become a global trade contender.
Recently, China’s Foreign Minister agreed with his Pakistani counterpart, at a meeting in Beijing, to bring Afghanistan into the CPEC (China – Pakistan Economic Corridor) trade route fold, a decision that Kabul has welcomed.
“China is an important and powerful country in the world, and China’s role in our country is very important. Economically, the Islamic Emirate needs the investment of all countries, especially China,” said Bilal Karimi.
Politicians also believe that China and Afghanistan have always had good relations and that the introduction of Chinese investment is critical for Afghanistan.
“China has always been interested in investing [in Afghanistan] since the Karzai era. Even before King Zahir Khan, and this shows China has always been on the side of the Afghan people,” said Wahidullah Sabawon, Chairman of the Islamic Unity Party of Afghanistan.
Economists believe that China, by having up-to-date technology, can help Afghanistan progress and develop technologically.
“China is a very close country and friend to us. We have very big trade with them. We used to trade with China for up to $2 billion. Now it is Afghanistan’s third-largest economic partner in the world,” said Khan Jan Alkozai, deputy director of ACCI.
Afghans on the other hand have expressed satisfaction with China’s assistance in the past, saying that by investing in Afghanistan, China can provide job opportunities for Afghans.
“China is a great world power and it is good that Afghanistan is asking for its help,” said Ahmad, a resident of Kabul.
“China is an industrial country that can cooperate well with Afghanistan,” said Mohammad Qasim, another Kabul resident.
“When China helps Afghanistan, jobs will be created, people will no longer be killed on the border while fleeing the country,” said Khalid, another resident.
Religious scholars also said that help and friendship from people around the world knows no bounds. All countries need to have a positive view towards Afghanistan, they said.
“The Chinese government is an example to all non-Muslim countries, and they can help the people of Afghanistan,” said Hussain Jafari, a religious scholar.
The Chinese government has meanwhile distributed several consignments of food and non-food aid to the people of Afghanistan since the Islamic Emirate came to power, and China was the first country to provide hundreds of thousands of doses of COVID-19 vaccines to the people of Afghanistan.
Business
Uzbekistan approves feasibility study agreement for Trans-Afghan Railway
The agreement builds on a tripartite document signed on July 17, 2025, which outlined cooperation on preparing a feasibility study for the Termez–Kharlachi railway corridor.
Uzbekistan has ratified an international agreement to prepare a feasibility study for the Naybabad–Kharlachi section of the Trans-Afghan Railway, formalizing its participation in the project.
President Shavkat Mirziyoyev signed a decree on February 4 approving the agreement.
The framework agreement involves the transport ministries of Uzbekistan, Afghanistan and Pakistan and provides for joint work on a feasibility study for the proposed railway line between Naybabad and Kharlachi. The section forms part of the wider Trans-Afghan Railway project aimed at strengthening transport links between Central and South Asia.
Under the decree, Uzbekistan’s Ministry of Transport has been designated as the competent authority responsible for implementing the agreement. The Ministry of Foreign Affairs has been tasked with notifying Kabul and Islamabad that Uzbekistan has completed the internal procedures required for the agreement to enter into force.
The agreement builds on a tripartite document signed on July 17, 2025, which outlined cooperation on preparing a feasibility study for the Termez–Kharlachi railway corridor.
The planned route is expected to run through Termez, Naybabad, Maidanshahr, Logar and Kharlachi, providing a transit corridor through Afghanistan.
The feasibility study will be commissioned by the Tripartite Project Office for the Development Strategy of International Transport Corridors under Uzbekistan Railways.
Established in Tashkent in May 2023, the office also operates branches in Kabul and Islamabad to coordinate the project.
First proposed in 2018, the Trans-Afghan Railway was initially projected to carry up to 20 million tons of cargo annually at a cost of about $5 billion. Cost estimates have since been revised.
In July 2022, Uzbekistan Railways cited an estimate of $4.6 billion with a construction period of up to five years, while Pakistan’s Ministry of Railways put the cost at $8.2 billion in December 2024.
More recent assessments have placed the overall cost at around $7 billion, with a public-private partnership under a Build-Operate-Transfer model among the options under consideration.
Business
Afghanistan seeks expanded ties with Russia in energy, mining and infrastructure
TASS reported that Kabul is also prepared to cooperate with Moscow in the extraction of mineral resources.
Afghanistan has expressed strong interest in broadening trade and economic cooperation with Russia, with a particular focus on energy, mining and infrastructure projects, according to Russia’s TASS news agency.
In an interview with TASS, Afghanistan’s Ambassador to Moscow, Gul Hassan, said Kabul is keen to import oil and gas from Russia as part of efforts to deepen bilateral economic ties.
He noted that trade relations between the two countries are progressing and that, if key obstacles—especially banking restrictions—are addressed, Afghanistan could also import medicines, industrial goods, grain, vegetable oils and other commodities from Russia.
In return, the ambassador said Afghanistan is ready to export fresh and dried fruits, vegetables, medicinal plants, carpets and mineral resources to the Russian market, adding that expanding export-import operations could significantly increase bilateral trade volumes.
He also revealed plans to open an exhibition of Afghan products in Moscow, which he said would help boost trade turnover.
TASS reported that Kabul is also prepared to cooperate with Moscow in the extraction of mineral resources.
Hassan described the economy as a central pillar of Afghanistan’s foreign policy, emphasizing the government’s goal of positioning the country as a key link in regional economic integration and attracting foreign investment.
He noted that Russian companies have long shown interest in Afghanistan’s industrial, mining and infrastructure sectors.
The ambassador further told TASS that Russian firms are already in talks with relevant Afghan authorities on the construction of small hydroelectric power plants.
Representatives of several Russian companies have reportedly visited Afghanistan and held meetings with officials and technical experts.
According to Hassan, practical steps toward cooperation in the energy and power generation sectors are expected in the near future, pointing to a potential new phase in Afghan-Russian economic relations.
Business
Pakistan, China plan to extend CPEC to Afghanistan, revive trilateral framework
The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics.
Pakistan and China are moving forward with plans to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan, a strategic step aimed at bolstering regional connectivity and economic cooperation. The expansion, along with the revival of the Pakistan-China-Afghanistan trilateral framework, was discussed in a recent briefing to the Pakistani Senate Standing Committee on Foreign Affairs.
According to Pakistan Today, officials from Pakistan’s Ministry of Foreign Affairs outlined the details during a session in Islamabad, where they reviewed key aspects of Pakistan’s foreign relations, regional developments, and economic diplomacy.
Officials emphasized that Pakistan’s relationship with China remains strong, underscoring the “all-weather” strategic partnership between the two nations. Strengthening ties with Beijing, they stated, continues to be a cornerstone of Pakistan’s foreign policy. This includes unwavering support for China’s position on regional and international issues, particularly the One-China policy and matters related to territorial integrity.
The briefing also touched upon China’s consistent backing of Pakistan in various areas, including sovereignty, economic stability, counter-terrorism, and support for Pakistan’s exit from the Financial Action Task Force (FATF) grey list.
The Kashmir issue was also addressed, with officials noting that China considers it an unresolved matter and advocates for a peaceful resolution in line with UN Security Council resolutions.
The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics. Officials stated that reviving the trilateral framework is part of broader efforts to foster greater cooperation and connectivity in the region, with an eye on long-term stability and prosperity.
The move also reflects both countries’ desire to further integrate Afghanistan into the regional economic landscape, a key element in fostering peace and development.
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