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India to provide technical support to Afghanistan’s central bank

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Officials of Da Afghanistan Bank (DAB) said this week that the Indian government has agreed to offer technical support to the bank.

The head of the central bank, Abdul Qadir Idris, recently met with Bharat Kumar, head of the Indian technical team, to discuss the economic situation, banking issues and joint cooperation.

Idris said the bank is committed to good, and improved banking relations with all countries within the framework of laws and that DAB wants to standardize the banking system across the country and develop the sector.

General manager of DAB, Siddiqullah Khalid, meanwhile stressed the need for continued cooperation between Afghanistan and India in the banking sector and said that joint cooperation regarding technical support will contribute to the growth and development of the banking system.

For his part, Bharat Kumar, the head of India’s technical mission in Afghanistan, assured the DAB officials that India will continue to cooperate and provide technical support to Afghanistan’s banking sector.

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Pakistan will lose big market in both Afghanistan, Central Asia: Sarhadi

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Reacting to the Afghan authorities’ call for exploring new trade avenues, Ziaul Haq Sarhadi, senior vice-president of Pak-Afghan Joint Chamber of Commerce and Industry, has expressed concern that Pakistan would lose a big market in both Afghanistan and Central Asian States, with whom Pakistan just recently signed trade agreements worth millions of dollars.

He noted that Afghanistan had the option to sign business deals with almost all Central Asian States along with Iran and Turkiye on easier terms than Pakistan’s, Dawn newspaper reported.

Before Durand Line crossings closure last month, Pakistan was exporting fresh fruits, cement, medicines, fabrics, agricultural tools, shoes, and other products worth $100–200 million per month to Afghanistan.

Zahidullah Shinwari, a former president of Sarhad Chamber of Commerce and Industry, said that besides losing the Afghan and Central Asian States markets, the suspension of trade with Afghanistan would also seriously affect the tax collection of Federal Bureau of Revenue, which was collecting millions of rupees on a daily basis from both exports and imports at all border points.

He said that industry in KP would be particularly hit hard by the trade suspension with Afghanistan as the KP industry was heavily reliant on its products to Afghanistan, while they couldn’t compete with industry in Punjab and Sindh due to several reasons.

“Much of our big industry, especially cement factories, are run by coal imported from Afghanistan, so suspension of coal import from Afghanistan will adversely affect the production capacity of our big industries,” he said.

He warned if the trade with Afghanistan ended permanently, it would result in the closure of a majority of industrial units in KP with hundreds of industrial labour becoming jobless, while the owners would go bankrupt.

Trade between Afghanistan and Pakistan came to a standstill over a month ago after Pakistani airstrikes on Afghanistan and clashes between the two countries.

Recently, Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, urged traders to look for new trade avenues, as Pakistan has always created hurdles.

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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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