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IEA seeks to expand economic ties with Central Asian countries

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Ministry of Industry and Commerce officials said on Wednesday they will increase efforts to expand economic relations with Central Asian countries in the coming year.

According to officials, Central Asian countries such as Uzbekistan, Turkmenistan and Kazakhstan are interested in expanding economic relations with Afghanistan.

Last week, Kazakhstan’s minister of trade visited Kabul and discussed the issue of expanding trade ties with the Islamic Emirate of Afghanistan (IEA).

“The two sides discussed increasing the level of trade between the two countries to $3 billion, building transportation infrastructure, railways, regional connectivity and investing in Afghanistan’s mineral resources,” Abdulsalam Jawad, the spokesman of the Ministry of Industry and Commerce, said.

Economic experts said that if Afghanistan can strengthen economic relations with Central Asian countries, it will have a positive effect on the economic situation of Afghanistan and the region.

“The more our economic relations with Central Asia expand, the more it will help Afghanistan’s economy and trade. Both Afghanistan and Central Asia will gain greatly. The Islamic Emirate should pay attention to this and if our relations with them expand, it will benefit Afghanistan,” Abdul Jabbar Safi, head of the Union of Industrialists, said.

Experts believe that Afghanistan can connect Central Asia to South Asia, and it plays an important role in expanding trade relations in the region.

“I think Afghanistan should start economic development from Central Asian countries, countries that have rich resources and will help Afghanistan’s economic system,” said Taj Mohammad Talash, an economic expert.

Officials of the Ministry of Industry and Commerce said that the expansion of cooperation in the fields of agriculture, mining, energy production and railway construction in Afghanistan will directly provide employment to thousands of citizens in the country.

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Kyrgyzstan doubles gasoline exports, majority sent to Afghanistan

The surge underscores growing fuel demand across the border, despite restrictions linked to Kyrgyzstan’s preferential fuel import agreement with Russia.

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Kyrgyzstan has sharply increased its gasoline exports this year, with Afghanistan emerging as the main destination, according to data from the Kyrgyz National Statistical Committee.

Between January and August 2025, Kyrgyzstan exported 65.5 million liters of motor gasoline valued at 2.6 billion Kyrgyz soms (about $30 million) — nearly double the 35.3 million liters worth 1.4 billion KGS recorded during the same period last year.

Of this total, 59.3 million liters worth 2.36 billion KGS were supplied to Afghanistan, compared to 30.2 million liters worth 1.18 billion KGS in 2024. The surge underscores growing fuel demand across the border, despite restrictions linked to Kyrgyzstan’s preferential fuel import agreement with Russia.

New Export Destinations Emerge

For the first time, Tajikistan and Uzbekistan appeared as export markets in 2025. Kyrgyzstan shipped 1.27 million liters of gasoline worth 48.7 million KGS to Tajikistan — a trade route that did not exist last year. Exports to Uzbekistan, however, dipped slightly to 4.96 million liters, down from 5.07 million liters in 2024, with little change in total value.

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IEA urges Afghan traders to cut reliance on Pakistan, citing repeated crossing closures

The decision comes amid escalating trade tensions between Kabul and Islamabad and the recurring shutdown of key crossings by Pakistan.

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The Islamic Emirate of Afghanistan (IEA) has urged Afghan traders to reduce their dependence on Pakistan for trade and transit, citing repeated crossing closures and Islamabad’s use of “non-political issues as political tools.”

Addressing a press conference on Wednesday, Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, said that Pakistan has repeatedly obstructed Afghanistan’s trade routes, causing significant economic disruptions.

“In order to safeguard national dignity, economic interests, and the rights of our citizens, Afghan traders should minimize their trade with Pakistan and seek alternative transit routes,” Baradar said.

He emphasized that imports from Pakistan should be redirected to other markets and countries, noting that “many viable alternatives are now available.”

Baradar also instructed that all pharmaceutical imports should come from other countries and called on Afghan businessmen to close their financial accounts and end business dealings with Pakistan.

During the same press conference, Minister of Industry and Commerce Nooruddin Azizi revealed that the month-long closure of the Torkham crossing had cost Afghan traders approximately $200 million in losses.

The decision comes amid escalating trade tensions between Kabul and Islamabad and the recurring shutdown of key crossings by Pakistan, which Afghan officials say has been used as leverage in political disputes.

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Durand Line crossings closure causes $200 million loss in 24 days

From October 12 to October 31, the first 20 days of the closure caused more than $50 million in direct losses.

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The closure of the Durand Line crossings has led to an estimated loss of $200 million within just 24 days, disrupting not only bilateral trade but also Pakistan’s commercial links with Central Asian states. Officials report that the blockade has cost millions of dollars in daily losses since it began in mid-October.

According to an official source, the crossings were shut on October 11 following clashes between the two sides. The closure of all eight crossing points stranded thousands of traders and left goods worth millions of dollars stuck on both sides. Perishable items began to spoil as the impasse continued, prompting traders and business groups to call for urgent dialogue.

From October 12 to October 31, the first 20 days of the closure caused more than $50 million in direct losses, the source told The Nation. By early November, the total losses were estimated near $200 million, as Afghanistan typically imports around $150 million worth of goods from Pakistan each month while exporting about $60 million, The Nation reported.

The shutdown also halted Pakistan’s exports to Central Asian countries, compounding the economic impact. Traders reported daily losses worth millions, with long queues of trucks carrying hundreds of tons of perishable goods waiting at the Durand Line. Around 20,000 to 25,000 workers were affected, while more than 1,000 trucks remained stranded at Karachi port.

The disruption also hit Afghan farmers hard. Agricultural prices plummeted, with a 10-kg box of grapes dropping from 4,500 Pakistani rupees to just 120–140 Afghanis, resulting in further financial strain on growers.

Investor sentiment showed signs of recovery once Pakistan and Afghanistan extended their ceasefire. On October 31, Pakistan’s KSE-100 Index surged by 3.13% (4,898 points) amid optimism that both sides would maintain peace and establish a monitoring mechanism to prevent further disruptions.

Earlier, on October 15, Pakistan had also suspended the processing of Afghan transit consignments to prevent congestion at crossing points, as 584 transit vehicles were already parked or en route toward the Durand Line.

Official data further reveals that Pakistan-Afghanistan bilateral trade declined by 6% to $475 million during the first quarter (July–September) of FY2025–26, compared to $502 million in the same period of FY2024–25. On a year-on-year basis, bilateral trade also dropped 13% in September 2025, down to $177 million from $204 million in September 2024.

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