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Afghanistan, Iran advance ties with new economic, trade agreements

Senior officials from Iran’s Khorasan Razavi Province and Afghanistan’s Herat Province met for talks on trade and economic issues, resulting in agreements across a broad range of sectors.

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Iran Afghanistan trade ties

In a key move to bolster regional cooperation, senior officials from Iran’s Khorasan Razavi Province and Afghanistan’s Herat Province convened for an economic and trade summit, resulting in preliminary agreements across a broad range of sectors.

The discussions focused on strengthening collaboration in industry and mining, customs and trade, transit and transportation, agriculture, education, engineering services, and medical tourism.

Both delegations underscored the importance of expanding bilateral economic ties as a path toward regional prosperity.

Gholam Hossein Mozaffari, Governor of Khorasan Razavi, highlighted the significance of the summit, noting that the joint economic working group and the sixth session of the Joint Economic Committee yielded constructive outcomes.

He praised the active involvement of private sector representatives from both provinces, adding that their engagement enriched the dialogue and paved the way for a forthcoming memorandum of understanding to formalize the cooperation.

Noor Ahmad Islamjar, Governor of Herat, expressed optimism about the future of bilateral relations. “This visit has great potential to bring prosperity to both our peoples,” he said, acknowledging Mozaffari’s leadership in advancing economic collaboration.

The meeting concluded with a symbolic exchange of gifts, reinforcing the goodwill and mutual respect between the two provinces and signaling a shared commitment to sustained cross-border engagement.

Cross-border trade between Iran and Afghanistan remains critical, particularly through border provinces like Herat and Khorasan Razavi. Iran is one of Afghanistan’s largest trading partners, supplying energy, construction materials, food, and pharmaceuticals.

Afghanistan exports agricultural products, precious stones, and handicrafts to Iran.

This summit marks a meaningful step forward in Iran-Afghanistan relations, reflecting a joint vision for regional economic development, diplomatic engagement, and deeper ties between neighboring communities.

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‘Made in Afghanistan’ expo opens in Tashkent

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The Afghanistan Chamber of Commerce and Investment has announced that a major exhibition of Afghan products titled “Made in Afghanistan” is opening today (Wednesday) in Uzbekistan’s capital Tashkent.

According to the chamber, the expo—supported financially by the United Nations Development Programme—will run until Friday and aims to showcase Afghanistan’s production and export potential.

More than 60 booths have been set up by Afghan traders, featuring a wide range of products including carpets, dried and fresh fruits, saffron, pine nuts, cotton, precious and semi-precious stones, as well as beverages.

Officials from the chamber expressed hope that the expo will help expand trade relations between Afghanistan and countries in the region, particularly Uzbekistan.

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Afghani strengthens nearly 10% against US dollar amid banking sector reforms

The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.

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Afghanistan’s central bank, Da Afghanistan Bank, says the national currency has appreciated by 9.93% against the US dollar during the year 1404, citing steady progress in the country’s financial and banking systems.

Officials attributed the gains to cautious monetary policies that have helped stabilise the Afghani against major global currencies while also boosting its value against the dollar.

The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.

As part of efforts to better manage liquidity, authorities also collected and destroyed worn-out banknotes in circulation. At the same time, officials reported growth in electronic banking, with digital payment usage rising in recent months.

Central bank spokesperson Haseebullah Noori said initiatives are underway to broaden access to banking services nationwide, including the wider rollout of Islamic banking options.

Analysts welcomed the stabilisation efforts but stressed the need to address ongoing challenges facing domestic banks, including the impact of international financial sanctions on Afghanistan.

They added that expanding Islamic banking could help draw more savings into the formal financial system, noting that a significant share of personal wealth remains outside banks. Bringing those funds into the sector, they said, could inject billions of Afghanis into the economy and further support financial stability.

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Uzbekistan delivers over 290 tons of aid to Afghanistan

The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.

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Uzbekistan has delivered more than 290 tons of humanitarian aid to Afghanistan, according to the country’s Ministry of Foreign Affairs.

The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.

The shipment includes essential food supplies such as flour, rice, wheat, vegetable oil, instant meals, pasta, and confectionery. An official handover ceremony was held in the border town of Hairatan.

Local officials, including Balkh province representatives and authorities from Hairatan, expressed appreciation for the continued support, acknowledging Uzbekistan’s efforts to assist the Afghan people.

Among those present at the ceremony were Uzbekistan’s Ambassador to Afghanistan, Oybek Usmanov, and Surkhandarya regional governor Ulugbek Kosimov.

The aid delivery underscores Uzbekistan’s ongoing humanitarian engagement and its broader efforts to promote regional cooperation and stability.

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