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Oxygen and cotton production factories worth $4 million open in Herat 

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An oxygen producing company and a cotton manufacturing facility, totaling $4 million, have opened in Herat’s Industrial City. 

This comes after Islamic Emirate of Afghanistan (IEA) officials called for investors to open businesses in the country. 

Herat Chamber of Industries and Mines say in the past four months, 20% of the factories have resumed operations and the necessary facilities have been provided to them to deal with customs and transportation. Currently there are about 200 factories in the city.

Officials from the new oxygen plant say they can produce 1,000 cylinders of gas a day. 

“The conditions are ready for all investors inside and outside the country. Whenever they want to invest, now is the best time. Herat is ready and a very good platform for investment,” said Nooruddin Azizi, Acting Minister of Trade and Industry.

Hamidullah Khadem, head of the Herat Chamber of Industries and Mines, said: “Approximately $1.5 million is the value of the cotton factory and about $2.5 million has been invested by the oxygen production company, of which about four million dollars we are witnessing in the opening of these companies.”

However, factory owners have raised concerns about the amount of goods, similar to domestic products, that are imported into the country. 

Herat factory owners say this is a problem for them and that they are manufacturing goods which are still being imported. 

“We have a special program with neighboring countries on importing similar goods, but we will support our domestic production at any time,” said Azizi.

“Our production has improved and sales in the market have improved. At the moment, what has been done is that similar goods are being imported from neighboring countries,” said Ismail Sakhawat, a factory owner.

Meanwhile, a new industrial town covering an area of 5,000 acres is expected to be developed. The Ministry of Industry and Trade said the process of distributing lands to industrialists will begin next month.

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Afghanistan officials call for investment during Indian expo visit

The event brought together officials and business representatives from more than 80 countries, showcasing agricultural, industrial, and construction products across 350 exhibition booths.

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Sayed Karim Hashemi, Chairman of the Afghanistan Chamber of Commerce and Investment (ACCI), has traveled to India to participate in the Bharat Buildcon International Exhibition, one of the country’s largest construction and infrastructure expos.

The event brought together officials and business representatives from more than 80 countries, showcasing agricultural, industrial, and construction products across 350 exhibition booths.

On the sidelines of the exhibition, Hashemi held meetings with Indian and international investors, business leaders, and private sector representatives to discuss expanding economic cooperation and investment opportunities in Afghanistan.

He highlighted Afghanistan’s vast reserves of construction raw materials and mineral resources, encouraging Indian and international companies to invest in the country’s mining, construction, and manufacturing sectors.

Accompanied by Afghanistan’s Ambassador to India, Noor Ahmad Noor, and Health Attaché Sayed Emad Hashemi, the ACCI chairman also visited the booths of several leading global companies.

During his visit, Hashemi toured a major traditional medicine manufacturer and emphasized the importance of expanding bilateral trade in medicinal herbs and agricultural products between Afghanistan and India.

He noted that growing demand for construction materials, combined with Afghanistan’s abundant natural resources, positions the country as an attractive destination for foreign investment, particularly from Indian companies.

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Afghanistan and Kazakhstan seal 25 private sector MoUs for cooperation

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A total of 25 cooperation memorandums of understanding (MoUs) have been signed between private sector representatives of Afghanistan and Kazakhstan following the Afghan–Kazakh Forum, which brought together an exhibition of products from both countries and a series of business-to-business meetings.

According to officials, the agreements cover a wide range of trade and economic sectors, including the import and export of pharmaceuticals, fresh and dried fruits, vegetables, banking services, as well as staple commodities such as wheat, flour, oil, and potatoes.

The signing of the agreements took place during the visit of a high-level Kazakh delegation to Kabul, led by the Deputy Prime Minister of Kazakhstan Serik Zhumangarin.

The forum is seen as part of broader efforts to strengthen economic cooperation and expand trade ties between the private sectors of the two countries.

 
 
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Trans-Afghan Railway cost surges to over $7 billion as regional interest grows

The project includes approximately 760 kilometers of new railway construction inside Afghanistan, between Mazar-e Sharif and Torkham.

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The estimated cost of the proposed Trans-Afghan Railway linking Uzbekistan, Afghanistan and Pakistan has risen to more than $7 billion, according to Uzbek Deputy Minister of Transport Jasurbek Choriyev.

Speaking at the Tashkent International Investment Forum on June 18, Choriyev said the updated figure reflects ongoing technical assessments and the evolving scope of the project. Earlier estimates had placed the cost at around $4.8 billion.

He noted that a detailed feasibility study for the strategic railway is currently underway and is expected to be completed by the end of 2026.

Strategic regional corridor

The Trans-Afghan Railway is planned to establish a direct rail link from Termez in Uzbekistan through Mazar-e Sharif, Logar, Kharlachi and Torkham in Afghanistan, before continuing into Pakistan and connecting with major ports including Karachi.

The project includes approximately 760 kilometers of new railway construction inside Afghanistan, between Mazar-e Sharif and Torkham.

According to officials, the railway is expected to significantly reduce transport time between Central Asia and Pakistan—from around 35 days to as little as three to five days—while also lowering logistics costs.

Trade and cargo capacity

Choriyev said the railway could handle up to 20 million tons of cargo annually, doubling earlier estimates of 10 million tons.

He added that the corridor would provide Central Asian countries with faster access to global maritime trade routes and strengthen economic links between South Asia, Central Asia and CIS states, where combined trade exceeds $700 billion.

Officials also estimate that container transport costs along the route could be reduced by nearly three times compared to existing logistics pathways.

Financing and international interest

The deputy minister confirmed that several countries, including the United Arab Emirates and Qatar, have expressed interest in participating in the project. The Eurasian Development Bank has also indicated readiness to support financing.

Uzbek officials have been promoting the railway as a long-term strategic infrastructure project aimed at boosting regional connectivity and trade integration. While feasibility work continues through 2026, final investment and construction decisions are expected to follow upon completion of the study.

The project is widely seen as a key component of efforts to transform Afghanistan into a transit hub linking Central and South Asia.

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