Business
Iran to launch three new cross-border rail routes to boost regional connectivity
The new initiatives come amid a broader push by Iran to expand its international railway footprint as part of its regional connectivity and trade facilitation strategy.
Iran’s National Railway Company (RAJA) is preparing to launch three new international railway routes connecting the country to Turkey, Afghanistan, and Turkmenistan, in a move designed to strengthen regional trade and passenger mobility.
Jabbar Ali Zakeri, CEO of RAJA and Deputy Minister of Roads and Urban Development, announced the initiative during an interview with Mehr News Agency, stating that the new rail links will bolster Iran’s role as a regional transport hub and support its broader economic and diplomatic outreach.
One of the main projects is a direct passenger rail service between Tehran and Ankara, Turkey, which will extend the current Tehran–Van route. Zakeri said discussions with Turkish authorities on operational and financial details — including ticket pricing — are underway, and the service is expected to be launched within the next two months.
Another strategic route will connect Tehran and Mashhad with Herat in western Afghanistan, marking a significant step in cross-border mobility between the two neighbors. Initial operations will reach Rozanak, just outside Herat, while a 70-kilometer rail segment—currently under construction by Iranian contractors—will eventually link the line directly to Herat city. Launch of the route is pending resolution of travel document protocols and cross-border coordination.
The third route will establish passenger rail service from Mashhad to Marv in Turkmenistan, with the long-term aim of integrating Iranian rail lines with Uzbekistan and Tajikistan. The move is seen as part of Iran’s strategy to deepen economic ties with Central Asia and position itself as a key transit corridor in the region.
The new initiatives come amid a broader push by Iran to expand its international railway footprint as part of its regional connectivity and trade facilitation strategy.
In May 2024, Iran and Afghanistan reopened the Khaf–Rozanak railway, a section of a larger project aimed at linking eastern Iran with western Afghanistan. Iranian officials have expressed interest in accelerating work on the Herat–Rozanak–Khaf corridor, which is considered critical for trade and transit to landlocked Afghanistan.
In addition, discussions are ongoing between Iran, Pakistan, and Turkey under the framework of the Economic Cooperation Organization (ECO) to revitalize the Istanbul–Tehran–Islamabad (ITI) freight corridor. Test runs have resumed in recent years, though regular service still faces logistical and political hurdles.
Iran has also made progress on north-south connectivity, particularly through the International North-South Transport Corridor (INSTC), which aims to connect India, Iran, and Russia via multimodal routes. The Rasht–Astara segment, which would complete Iran’s portion of the corridor, is currently under development with support from Russia.
The Chabahar–Zahedan railway, backed by Indian investment, is another high-priority project for Iran. Once completed, it will link the strategic port of Chabahar to Iran’s rail network and provide Afghanistan and Central Asia with direct sea access.
With sanctions continuing to limit air and banking sectors, Iran views regional rail as a relatively insulated and strategic lever for economic resilience, especially in its relationships with neighbors such as Afghanistan, Turkmenistan, and Turkey.
These new rail corridors are expected to increase not only the movement of passengers, but also facilitate trade, tourism, and regional cooperation, reinforcing Iran’s vision of becoming a central node in Eurasian transit networks.
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.
Business
Uzbekistan–Afghanistan trade rises to $1.6 billion in 2025
Trade relations remain largely export-driven, with Uzbekistan supplying Afghanistan primarily with food products, energy resources, and industrial goods.
Trade between Uzbekistan and Afghanistan rose sharply in 2025, reaching $1.6 billion, according to official data released by Uzbekistan’s National Statistics Committee.
The figure represents a 45.5 percent increase from $1.1 billion in 2024 and an 84.4 percent rise compared with 2023, when bilateral trade stood at $867.5 million, highlighting rapid growth in economic exchanges between the two countries.
Uzbekistan’s exports to Afghanistan accounted for the vast majority of the trade volume, totaling $1.5 billion, or 93.8 percent of overall bilateral turnover. Trade relations remain largely export-driven, with Uzbekistan supplying Afghanistan primarily with food products, energy resources, and industrial goods.
The surge in trade comes as Uzbekistan’s total foreign trade turnover reached $81.2 billion in 2025, reflecting broader efforts to expand and diversify external economic ties. By the end of the reporting period, Uzbekistan maintained trade relations with 210 countries.
China remained Uzbekistan’s largest trading partner, accounting for 21.2 percent of total trade, followed by Russia (16.0 percent), Kazakhstan (6.1 percent), Türkiye (3.7 percent), and the Republic of Korea (2.1 percent).
The latest figures underscore strengthening economic ties between Uzbekistan and Afghanistan amid efforts to boost regional trade and connectivity.
Business
Turkish firm eyes investment in Afghanistan’s power infrastructure
Technical assessments are also planned in various provinces to evaluate the potential for increased electricity generation from existing water resources.
A Turkish electrical equipment company has expressed strong interest in investing in Afghanistan’s hydropower sector, focusing on the installation of new-technology turbines and the rehabilitation of existing power generation facilities, according to Da Afghanistan Breshna Sherkat (DABS).
DABS Chief Executive Officer, Abdul Haq Hamkar, met with Mr. Günay Küsay, a senior engineer and representative of Turkey’s Marbeyaz company, to discuss potential cooperation in hydropower development, modernization of equipment, and the installation of advanced electricity generation systems.
During the meeting, Hamkar welcomed the Turkish delegation and said that all necessary facilities and incentives have been put in place to encourage both domestic and foreign investment in Afghanistan’s electricity and electrical equipment production sectors. He emphasized that investors are free to invest across relevant fields within the energy sector.
Mr. Küsay praised the leadership of DABS and said Marbeyaz is keen to invest in electricity generation from Afghanistan’s water resources, rehabilitate existing hydropower turbines, install modern high-capacity turbines, and contribute to strengthening the technical capacity of local staff.
At the end of the meeting, both sides agreed to hold joint technical sessions between DABS and Marbeyaz experts. Technical assessments are also planned in various provinces to evaluate the potential for increased electricity generation from existing water resources.
DABS said that improved security, economic stability, and transparent governance have helped create a more favorable environment for international companies to invest in Afghanistan’s power generation and electrical equipment production sectors.
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