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
Iran-Afghanistan joint chamber of commerce delegation arrives in Kabul to boost trade ties
The delegation will participate in Afghanistan’s National and International Industry and Mines Exhibition and hold business meetings.
A delegation from the Iran-Afghanistan Joint Chamber of Commerce has arrived in Kabul to take part in an international exhibition, according to the Iranian Embassy in Afghanistan.
In a statement posted on its X account on Thursday, the embassy said the delegation will participate in Afghanistan’s National and International Industry and Mines Exhibition and hold business meetings and conferences with Afghan officials.
The embassy added that the visit aims to expand trade relations between Afghanistan and Iran and strengthen economic cooperation between the two neighboring countries.
The Afghanistan National and International Industry and Mines Exhibition opened in Kabul on Wednesday, June 29, 2026, bringing together domestic and foreign participants to showcase opportunities in industry, mining, and commerce.
Afghanistan and Iran share long-standing economic relations, with trade cooperation continuing despite ongoing regional political and financial challenges.
Business
Afghanistan eyes direct Basmati rice imports from India amid tensions with Pakistan
Afghanistan is exploring direct imports of Basmati rice from India as it seeks to diversify its supply sources amid ongoing tensions with Pakistan, according to a report by The Hindu.
The report said Indian exporters and Afghan importers are expected to meet next month to discuss expanding direct trade in Basmati rice, following preliminary talks between officials from both countries held last week with the facilitation of the PHD Chamber of Commerce and Industry.
Afghanistan consumes nearly 500,000 tonnes of Basmati rice annually and has traditionally relied on imports from neighboring Pakistan. However, industry sources told The Hindu that recent strains in Afghanistan-Pakistan relations have encouraged Kabul to seek alternative suppliers, including India.
Representatives of Afghanistan’s diplomatic mission in New Delhi reportedly took part in the discussions and expressed interest in increasing purchases of Indian Basmati rice. At present, some Indian rice reaches Afghanistan indirectly through traders in Iran and Dubai, a route that adds to transportation and transaction costs.
One proposal under consideration is to transport rice through Iran’s Bandar Abbas Port, subject to agreements between the two governments. The discussions are also expected to cover logistics, payment mechanisms, and the possibility of barter trade, with Afghanistan’s dried fruit exports to India seen as a potential component of future trade arrangements.
According to The Hindu, a direct trade arrangement could help India expand its share of Afghanistan’s Basmati market, which has historically been dominated by Pakistani suppliers.
Business
Afghanistan, Kyrgyzstan establish trade council to boost economic cooperation
The two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council.
The Embassy of the Islamic Emirate of Afghanistan in Kyrgyzstan says the Afghanistan-Kyrgyzstan Business Forum has been held with the participation of officials from both countries.
According to a statement issued by the embassy, Acting Ambassador Abdul Shakoor Haqqani said Afghanistan supports strengthening bilateral trade relations and promoting joint economic initiatives between the two countries.
The statement added that the two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council. The council aims to strengthen ties between business communities, coordinate joint initiatives, and expand and support economic projects.
Meanwhile, Sayed Karim Hashemi, Chairman of the Afghanistan Chamber of Commerce and Investment, arrived in Kyrgyzstan on Saturday at the head of a trade delegation to participate in the forum.
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