Uzbekistan is set to open a trade center in the northern city of Mazar-e-Sharif, which will provide Uzbek entrepreneurs with a platform to market their goods in Afghanistan.

According to Trend news agency, the center will cover an area of 220 square meters and will also be used to find new trading partners between Afghan and Uzbek entrepreneurs and expand export opportunities.

The center will house permanent showrooms and warehouses for pharmaceuticals, electrical goods, and construction materials.

Trade turnover between Uzbekistan and Afghanistan reached $153.7 million in January 2025. This is 231 percent more compared to the same period last year ($46.3 million in January 2024).

Last week the Uzbek Ministry of Investment, Industry and Trade said Uzbekistan and Afghanistan plan to increase the trade turnover to $3 billion.

The current state and future prospects of bilateral trade and economic relations were discussed on Saturday during a meeting between Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov, and Afghan Trade Minister Nuruddin Azizi, who was visiting the Termez International Trade Center in the Surkhandarya region, the ministry said in a statement.

The latest trade house development comes amid concerted efforts by both countries to boost their cross-border trade relations.

Uzbekistan’s electricity supply company has said there has been no changes to tariffs for electricity exports to Afghanistan. 

According to a statement issued by the National Electric Networks of Uzbekistan, no plans have been made to amend the tariffs although an agreement was reached to expand the project to build the Surkhon-Pul-e-Khumri 220-500 kV power transmission line by constructing additional substations and networks.

Last months, “a delegation headed by the acting Deputy Prime Minister of Afghanistan, Mullah Abdul Ghani Baradar, visited our country.

“During the bilateral meetings, issues of further expansion of mutually beneficial relations, consistent development of cooperation in trade, economic, energy, transport and other spheres were discussed in detail,” the statement read.

“As a result of the project optimization and the increase in the share of localized materials in construction, a preliminary agreement was reached to reduce the construction cost from 252 million to 222 million US dollars. 

“The contract is currently in the process of being agreed upon and will be signed after the negotiations are completed.

“At the same time, no official changes were made to the tariffs for electricity supplies to Afghanistan,” the statement read.

In December last year Uzbekistan extended its agreement to export electricity to Afghanistan for 2025.

After talks in Afghanistan, Uzbekistan’s energy company Uzenergosotish and Afghanistan’s DABS signed a power purchase agreement for electricity supplies this year.

The sides also conducted “comprehensive and detailed” technical discussions regarding the construction of the Surkhan to Pul-e-Khumri to Kabul power line. 

Once operational, the project is expected to supply Afghanistan with 24 million kWh of electricity daily, amounting to 6 billion kWh annually. 

The transmission line will span 245.6 kilometers, with 45 kilometers on Uzbekistan’s side and 200.6 kilometers within Afghanistan.

Currently, Afghanistan produces only 20% of its electricity domestically, importing the remaining 80% from Uzbekistan, Tajikistan, Turkmenistan and Iran. 

Agreements with Tajikistan and Turkmenistan were renewed in late November and early December, respectively.

In September 2019, Uzbekistan’s National Electric Networks signed a 10-year contract with DABS for electricity exports. At the time, deputy energy minister Sherzod Khodjaev stated that initial supplies would amount to 4.2 billion kWh annually, with plans to increase the volume to 6 billion kWh over time.

Uzbekistan has been supplying electricity to Afghanistan since 2002. Over the years, the volume of supplies has grown significantly, from 62 million kWh in the initial years to 2.6 billion kWh by the end of 2019. 

In 2023, Uzbekistan exported 1.82 billion kWh of electricity to Afghanistan, valued at $91.18 million (approximately 5 cents per kWh).

A joint Afghanistan-Uzbekistan trade forum was held recently in Tormoz city in Uzbekistan and brought together high-level officials from both countries including Afghanistan’s acting minister of industry and commerce, Nooruddin Aziz, and his Uzbekistan counterpart Laziz Qudratov.

The meeting provided new opportunities for mutual growth and development, aimed at strengthening economic cooperation, large-scale investments and facilitating trade exchanges.

Afghanistan’s ministry said the meeting, which was also attended by delegations from the private sector, was held in the framework of the implementation of previous agreements and commitments resulting from the visit of Mullah Abdul Ghani Baradar, Deputy Economic Prime Minister of the Islamic Emirate of Afghanistan (IEA) to Uzbekistan.

Various topics were discussed at the forum including important issues such as Uzbekistan’s investment in various sectors of Afghanistan’s economy.

One of the projects under discussion was the establishment of a commercial complex in the land port city of Hairan. Other topics were on food production and processing; poultry farming; pharmaceutical industries; cement production; building materials; horticulture (pistachio orchards) and vegetable and fruit processing facilities, with an initial investment of more than $200 million.

Delegates also discussed the need to hold an expo in Tormoz for regional countries; along with the need to establish trade offices in Afghanistan and Uzbekistan.

Customs cooperation, multiple entry business visas and the establishment of a joint trade committee were discussed.

Officials have said the meeting was an important step in strengthening economic and trade relations between the two countries and has opened new horizons for future cooperation.