Business
Misunderstanding of Afghanistan sanctions crippling local businesses: NRC report

Over-compliance and misconceptions about the scope of international sanctions have led to severe obstacles for the Afghan business community, including for businesses that import and export food and other essential goods, the Norwegian Refugee Council (NRC) said in a report released Wednesday.
The report calls on the international community to improve awareness about sanctions and reduce over-compliance. It argues that concrete steps must be taken to address the crippled Afghan economy and ongoing unprecedented humanitarian crisis.
“Humanitarian aid alone cannot meet the needs of the millions of Afghans who have lost their jobs and been forced to take on huge debts and sell their possessions just to be able to buy food needed for survival,” said Neil Turner, NRC’s country director in Afghanistan. “We must reverse this devastating economic disaster. A stable economy, thriving private sector, and the reintroduction of development programmes are important to complement the work of humanitarian organizations.”
Since the Islamic Emirate returned to power in 2021, international actors have pursued political and economic isolation policies towards Afghanistan. More than 28 million people are now on the brink of survival, according to the report.
NRC said that there are comprehensive exemptions to the sanctions that should enable the transfer of money in and out of Afghanistan for activities designed to address the basic needs of the population, but banks continue to restrict businesses’ access to financial services despite the exemptions in place. Afghan businesses highlighted that payment instructions for any international bank transaction that mention Afghanistan get blocked, even for transactions for food shipments via the United Nations.
“We need to educate overseas companies and banks that Afghanistan itself is not under sanctions. There is a real lack of understanding about this – particularly among key sectors in our main export and import markets,” said an executive of a large agricultural firm in Afghanistan.
To address the complex political, economic, and social changes since IEA’s return to power, NRC called on major governments, financial institutions, UN agencies and relevant regional actors to urgently convene to establish measures to stabilize and support Afghanistan’s economy for the benefit of all the Afghan people.
“Concrete steps must be agreed to address the barriers faced by critical private sector actors in Afghanistan, including challenges in accessing financial services. On top of this, it’s vital that mechanisms are stepped-up to provide technical assistance to the Afghanistan Central Bank to support its resumption of core functions that are critical to support the Afghan economy, private sector actors, and ultimately the Afghan people who have already endured so much,” added Turner.
Business
Afghanistan–Tajikistan trade grows by 31 percent

New data from Tajikistan’s Statistics Agency shows a significant rise in trade volume between Afghanistan and Tajikistan in the first five months of 2025.
According to the report, bilateral trade reached nearly $40 million, marking a 31.1% increase compared to the same period in the previous year. During this time, Tajikistan exported approximately $32 million worth of goods to Afghanistan, while importing $8 million from its southern neighbor.
Tajikistan’s main exports to Afghanistan include electricity, construction materials, cement, coal, mineral fertilizers, and food products. Meanwhile, Afghanistan exports agricultural products such as figs, raisins, and cotton to Tajikistan, along with carpets and precious or semi-precious stones.
Despite strained political relations between the Islamic Emirate of Afghanistan and the government of Tajikistan, economic cooperation between the two countries has continued. Tajikistan remains the only neighboring country that has not accepted IEA diplomats at the Afghan embassy in Dushanbe.
Nevertheless, officials from the Islamic Emirate have stated that dialogues are underway to improve political relations between Kabul and Dushanbe.
Business
Ghulam Khan border crossing in Khost temporarily reopened after two-week closure
The crossing had been closed by Pakistani authorities nearly two weeks ago without any formal explanation.

The Ghulam Khan border crossing in Afghanistan’s southeastern Khost province has been officially reopened for a period of 15 days, following a two-week closure that disrupted trade between Afghanistan and Pakistan, according to Border Police spokesperson Abidullah Uqab Farooqi.
Farooqi stated on Tuesday, July 16, that the temporary reopening would allow for the resumption of cargo transportation and trade activities between traders and freight companies. He emphasized that the move will help prevent further spoilage of perishable goods that had been stuck at the border.
Ghulam Khan is considered one of the most critical trade gateways between Afghanistan and Pakistan. It plays a vital role in the transportation of essential goods and raw materials between the two neighboring countries.
The crossing had been closed by Pakistani authorities nearly two weeks ago without any formal explanation. The abrupt shutdown caused significant disruptions for Afghan traders and truck drivers, with many reporting financial losses due to delayed shipments and rotting goods.
While the border has now reopened temporarily, Pakistani officials have yet to issue any formal statement regarding either the initial closure or the rationale behind its reopening.
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.
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