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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.

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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.

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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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