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IEA signs final agreement with UAE-based company to run Afghan airports

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The Islamic Emirate of Afghanistan announced Thursday it has signed the third and final agreement for the running of Afghanistan’s airports with GAAC Holding, which will include air space control.

The contract with the UAE company is for 10 years, Ghulam Jelani Popal, deputy head of Afghanistan’s Ministry of Transport and Civil Aviation said at a press conference.

He said the IEA had already signed contracts with GAAC over ground services and security.

Ibrahim Moarafi, the General Manager and Regional Director of GAAC told reporters in Kabul that it would encourage major international airlines to return to Afghanistan.

“We believe this is the significant development,” he said. “We also believe this is a significant development as it will bring economic benefits in terms of job creation.”

Afghanistan’s Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar said at the event that Afghanistan’s self-reliance and economic development was the IEA’s priority, “and to achieve this goal, two important contracts were signed with GAAC Holding in the fields of ground services and aviation security.”

“As a result, in addition to the collection of revenue, job opportunities were provided to many citizens,” said Mullah Baradar.

He also said this move would lead to the increase of international flights to Afghanistan, which would have positive effects on increasing trade and transit.

“With the signing of this agreement, basic steps will be taken to standardize important parts of the airport, train experts, ensure flight safety and collect revenue,” said Mullah Hamidullah Akhundzada, Ministry of Transportation and Aviation.

Morafi, from GAAC said: “It is a matter of pleasure that today an agreement for air navigation services was signed with the Islamic Emirate of Afghanistan, and based on this agreement, we will work to increase the capacities and equip the necessary departments.

“We are determined to provide standard services to exporters and importers as per international conventions, in addition to increasing international flights.”

The agreements would help ease Afghanistan’s isolation from the outside world, and allow for an increase in cargo and commercial passenger flights into the country.

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Kazakhstan reports 2.3-fold rise in grain exports to Afghanistan

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Afghanistan has sharply increased imports of grain from Kazakhstan, with deliveries rising 2.3-fold between September 2025 and May 20, 2026, according to Kazakhstan’s Agriculture Ministry.

During that period, Kazakhstan exported around 3 million tons of grain to Afghanistan, compared to 1.3 million tons in the same period a year earlier.

The increase comes as Afghanistan’s Finance Ministry said this week that wheat imports into the country have risen by 345% following changes in customs tariffs aimed at supporting domestic production. According to the ministry, tariffs on imported wheat flour were gradually increased from 5% to 8%, while duties on wheat imports were reduced to encourage local flour processing.

Officials said nearly 198,000 tons of wheat were imported during the first two months of the 1405 fiscal year, compared to 44,000 tons during the same period last year. The ministry added that the policy has helped expand operations at domestic flour factories, increase local production, and create more job opportunities.

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Fifth section of Hairatan–Mazar-i-Sharif railway reopens in northern Afghanistan

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Mullah Abdul Ghani Baradar, the Deputy Prime Minister for Economic Affairs, on Thursday officially reopened the fifth section of the Hairatan–Mazar-e-Sharif railway line in northern Balkh province, marking another step in Afghanistan’s efforts to expand its rail infrastructure and regional trade connectivity.

Speaking at the reopening ceremony, Baradar praised the Ministry of Public Works for its efforts in developing Afghanistan’s railway network and expressed appreciation for Uzbekistan’s cooperation in the project.

He said economic and commercial ties between Afghanistan and Uzbekistan have strengthened significantly in recent years, adding that a joint committee led by the governor of Balkh and involving relevant institutions has been established to further enhance bilateral cooperation.

Officials said the newly reopened section of the railway is 70 kilometers long and includes 30 kilometers of branch lines, five railway stations, and the capacity to unload up to 50 wagons simultaneously.

The government said the reopening of the railway section is expected to improve the transportation of commercial goods, increase trade volume, and facilitate regional economic connectivity between Afghanistan and neighboring countries.

The Hairatan–Mazar-e-Sharif railway is considered one of Afghanistan’s most important trade corridors, linking the country to Central Asia through Uzbekistan.

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Kabul, Tashkent push industrial cooperation with planned factory transfers

The talks focused on strengthening collaboration in the light industry sector and making use of Uzbekistan’s experience in manufacturing and industrial development.

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Afghanistan and Uzbekistan have discussed the transfer of 20 light industry factories to Afghanistan as part of efforts to deepen economic cooperation and expand industrial investment between the two countries.

According to Afghanistan’s Ministry of Industry and Commerce, the discussions took place during a bilateral meeting between Nooruddin Azizi, Afghanistan’s Minister of Industry and Commerce, and Nozimjon Kholmurodov, head of the Light Industry Development Agency under Uzbekistan’s Council of Ministers, along with their respective delegations.

The talks focused on strengthening collaboration in the light industry sector and making use of Uzbekistan’s experience in manufacturing and industrial development.

Key topics included standard cotton cultivation in Afghanistan, cotton processing and yarn production, as well as the relocation of cotton processing, leather and cashmere factories from Uzbekistan to Afghanistan. The two sides also discussed the production of leather boots and textiles in Afghanistan and the export of Uzbek-made garments to Afghan markets.

Officials further reviewed plans for transferring 20 factories from Uzbekistan to Afghanistan across various industrial sectors.

Discussions also covered organizing a specialized international light industry exhibition at the Termez joint market and promoting joint investment in Afghanistan’s yarn production industry.

At the conclusion of the meeting, both sides introduced technical and liaison teams tasked with following up on the implementation of the agreed initiatives.

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