Business
Ministry of energy pushes ahead with plans to increase power output

Officials from Afghanistan’s Ministry of Energy and Water have identified 16 electricity-generating projects that once established will increase power output and help make the country less reliant on its neighbors for this critical commodity.
The ministry’s spokesman Mawlavi Akhtar Mohammad Nasrat said of these 16, there are 12 thermal and solar power projects that have been identified and proposals have been shared with domestic and foreign investors in the hope of attracting financial backing.
Nasrat told Ariana News they have spoken to possible investors from Russia, Iran, the US, China and Turkey but as yet no agreements have yet been finalized.
“Companies and donors came here to Afghanistan from Russia, US, China, Iran, and Turkey and said they are interested in investing in this area to increase electricity generation across the country,” he said.
Economists also believe that if investors can be found to support this sector, and more electricity is generated, industry will grow.
One economist, Taj Mohammad Talash, said he thinks the agricultural sector would also grow if more power was generated. He said: “The Islamic Emirate can prioritize energy in three categories, through water, wind, and solar.”
Currently, Afghanistan pays its neighboring countries about $250 million a year for electricity as it generates only about 600 megawatts (MW) from several hydroelectric, fossil fuel and solar plants.
However, an additional 670 MW is imported from neighboring Iran, Uzbekistan, Tajikistan and Turkmenistan.
Power projects ‘prioritized’
In April, the IEA’s Economic Commission, chaired by Deputy Prime Minister Mullah Abdul Ghani Baradar, gave orders for various ministries to prioritize projects to generate electricity.
At the time, the commission said after “extensive discussions on all issues that the private sector is prepared to invest in” it was decided that the generation of electricity should be a priority.
According to the statement, the commission instructed the Ministry of Mines and Petroleum; the Ministry of Trade and Industry; the Chamber of Industry and Mines; as well as the Chamber of Commerce and Investment, under the leadership of the Ministry of Energy and Water, to also generate electricity from coal.
A shortage of power has plagued Afghanistan for decades despite it having ample hydropower, coal and fossil fuel resources.
Over the past few years however, one successful private partnership has emerged – between the Afghan government and Bayat Power, Afghanistan’s largest, Afghan-owned and operated power production company which has the region’s most technologically advanced gas fired electric power plant.
Launched in 2019, this commercial operation provides reliable and affordable electric power to thousands of people in Afghanistan.
Located in Sherberghan, in the north of the country, the epicenter of the nation’s gas-rich region, Bayat Power has steadfastly aimed to provide essential power for Afghanistan’s economic growth.
Powered by a Siemens SGT-A45 ‘Fast Power’ turbine, the world’s most advanced mobile gas to energy power solution, phase one of Bayat Power-1’s operations generates up to 41 megawatts of power for Afghan homes and businesses.
To date, Bayat Power has delivered over 600 million kilowatts of domestic power to the Afghan grid. However, Bayat Power hopes to eventually roll out three phases in total, that will generate more than 200 megawatts of electricity – enough to serve millions of Afghan residential and commercial clients.
Business
Afghanistan-Pakistan trade surges 25% to nearly $2 billion in 2024
The growth was largely driven by a 31 percent increase in Pakistani exports, which rose to $1.391 billion, while imports from Afghanistan grew by 13 percent, reaching $607 million

Bilateral trade between Afghanistan and Pakistan rose by 25 percent in the fiscal year 2024–25, reaching $1.998 billion, up from $1.603 billion the previous year, a Pakistani official told local media.
The growth was largely driven by a 31 percent increase in Pakistani exports, which rose to $1.391 billion, while imports from Afghanistan grew by 13 percent, reaching $607 million, The Nation reported.
Among Pakistan’s top-performing exports was sugar, which saw a staggering 4,333 percent increase, climbing from $5.93 million in FY2023–24 to $262.77 million.
Other key exports included construction materials, textiles, and pharmaceuticals.
However, some products—including rice, eggs, salts, electrical equipment, and footwear—recorded year-on-year declines of between 17 and 99 percent.
On a monthly basis, June 2025 marked a strong finish, with exports rising 90 percent year-on-year to $142 million, up from $75 million in June 2024. Imports, however, fell by 29 percent year-on-year and by 54 percent compared to May 2025.
Overall, June 2025 bilateral trade stood at $158 million, reflecting a 62 percent year-on-year increase and a 9 percent rise month-on-month, suggesting momentum in trade ties despite fluctuations in certain import categories.
Analysts attribute the surge to improved regional connectivity, enhanced trade facilitation, and greater demand for Pakistani goods in Afghan markets.
Business
Iran’s non-oil exports to Afghanistan totaled $510 million in first quarter
A technical meeting in Kabul on April 10 reviewed progress on the Tehran-Kabul economic pact, focusing on trade, transit, mining, and agriculture.

Iran exported $510 million in non-oil goods to Afghanistan between March 21 and June 21, making it Iran’s fifth-largest export destination, according to the Iran Customs Administration.
Officials and business leaders emphasized the growing trade relationship was key to regional stability. At a recent Iran-Afghanistan trade conference, ICCIMA’s deputy head, Payam Baqeri, called for a deeper economic partnership, citing shared history and complementary resources—such as Iran’s industrial infrastructure and Afghanistan’s mineral wealth.
Baqeri also highlighted efforts to expand trade through joint ventures, workforce development, and easing trade barriers. Meanwhile, Iran’s Agriculture Minister expressed readiness to boost cooperation in agricultural services and called for a joint committee to advance bilateral ties.
A technical meeting in Kabul on April 10 reviewed progress on the Tehran-Kabul economic pact, focusing on trade, transit, mining, and agriculture.
Bilateral trade between the two countries surged by 84% in 2024, reaching $3.2 billion.
Iran exported $3.14 billion worth of goods—mostly oil products, steel, food, and construction materials—while Afghanistan’s exports to Iran, mainly raw and agricultural products, grew by 116% to $54 million.
Business
Azerbaijan and Afghanistan explore expansion of trade corridors via Baku Port
Azerbaijan plays a critical role in this corridor, leveraging its Baku International Sea Trade Port, Baku-Tbilisi-Kars railway, and regional logistics zones.

Azerbaijan Railways Chairman Rovshan Rustamov met this week with Afghanistan’s Deputy Prime Minister for Economic Affairs, Abdul Ghani Baradar, in Baku to discuss the expansion of cargo transportation routes between South Asia, the Caucasus, and Europe.
The meeting, which took part during Baradar’s visit to Azerbaijan, signals a deepening of economic cooperation as Afghanistan seeks greater integration into regional and transcontinental logistics networks, including the strategically vital Middle Corridor.
According to a statement issued by Azerbaijan Railways, the parties explored ways to enhance multimodal transport cooperation, with a particular focus on facilitating Afghan exports via the Baku Port.
Afghan representatives emphasized the need to accelerate the movement of goods to international markets and called for technical and logistical support from Azerbaijan.
In response, Rustamov expressed Azerbaijan Railways’ readiness to deliver Afghan-origin cargo to European markets, highlighting Baku’s growing role as a regional logistics hub.
“Azerbaijan stands ready to support Afghanistan’s economic integration by providing reliable and efficient access to international corridors,” Azerbaijan Railways stated.
The Middle Corridor and Afghanistan’s Trade Ambitions
The Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), connects China to Europe through Central Asia, the Caspian Sea, the South Caucasus, and Turkey.
Azerbaijan plays a critical role in this corridor, leveraging its Baku International Sea Trade Port, Baku-Tbilisi-Kars railway, and regional logistics zones.
Afghanistan, a landlocked country with limited direct access to global markets, has long sought alternatives to its dependency on Pakistan’s ports.
In recent years, it has aimed to integrate more deeply with regional trade initiatives linking Central Asia, the Caucasus, and Europe—especially after the re-establishment of the Islamic Emirate in 2021 and renewed focus on self-reliance and connectivity.
Despite ongoing political and financial challenges, Afghan exports of dried fruits, minerals, carpets, and medicinal plants have continued to find demand in international markets.
Expanding access to ports via multimodal routes through Uzbekistan, Turkmenistan, and the Caspian Sea could significantly reduce costs and transit times for Afghan producers.
Geopolitical Implications
The meeting between Afghan and Azerbaijani officials underscores the increasing geoeconomic importance of the Middle Corridor amid shifting global supply chains. For Baku, deeper logistics cooperation with Afghanistan presents a chance to strengthen ties with South and Central Asia, diversify transit flows, and cement its position as a bridge between East and West.
For Kabul, the success of such initiatives could not only bolster trade but also enhance its standing in regional diplomacy, offering an avenue for engagement despite a lack of formal international recognition.
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