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Pakistan-Afghanistan trade falls 12% in July

Pakistan’s exports to Afghanistan were recorded at $102 million, a sharp 28 percent decline from $142 million in June.

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Pakistan-Afghan trade volume fell by 12 percent on a month-on-month basis in July 2025, while year-on-year figures showed a marginal two percent decline, according to official data.

Total bilateral trade dropped to $138 million in July, compared to $158 million in June 2025. On a yearly comparison, trade slipped slightly from $141 million in July 2024.

Pakistan’s exports to Afghanistan were recorded at $102 million, a sharp 28 percent decline from $142 million in June.

Compared with July last year, exports eased by two percent from $104 million. Imports from Afghanistan, however, surged on a monthly basis, rising 129 percent from $16 million in June to $37 million in July. Year-on-year, imports dipped by 3 percent from $38 million in July 2024.

Sector-wise, several Pakistani exports to Afghanistan showed strong growth.

Cement exports rose 182 percent year-on-year to $10.46 million in July 2025, while fruit and vegetable shipments climbed 215 percent to $9.63 million.

Exports of animal or vegetable oils increased 203 percent, iron and steel 180 percent, and prepared animal fodder and oil cakes 575 percent. Paper and paperboard sales more than doubled, and rice exports rose 11 percent to $19.44 million.

In contrast, sugar exports fell to zero in July, while miscellaneous food items and motorcycles dropped 82 percent, malt extracts 62 percent, and pharmaceutical products 10 percent.

On the import side, Pakistan’s purchases of Afghan agricultural products rose significantly.

Imports of grapes surged 562 percent, tomatoes 212 percent, apricots 116 percent, and cucumbers nine percent year-on-year. However, cotton imports declined 61 percent, coal 25 percent, oilseeds 52 percent, and cereals 24 percent.

Despite July’s slowdown, bilateral trade between Pakistan and Afghanistan showed strong growth in the previous fiscal year.

In FY2024-25, trade volume reached $1.99 billion, a 25 percent increase from $1.60 billion in FY2023-24. Pakistan’s exports drove much of this growth, rising 31 percent to $1.39 billion, while imports from Afghanistan increased 13 percent to $607 million.

Among the standout performers was sugar, whose exports skyrocketed by over 4,300 percent to $262.77 million in FY2024-25 from just $5.93 million a year earlier.

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Kazakhstan grain exports to Afghanistan jump sharply

Shipments to Afghanistan reached 302,000 tons during the period, marking a 4.2-fold increase compared to the same timeframe last year.

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Grain exports from Kazakhstan to Afghanistan surged more than fourfold in the first quarter of 2026, according to a report by Kazinform International News Agency.

Shipments to Afghanistan reached 302,000 tonnes during the period, marking a 4.2-fold increase compared to the same timeframe last year.

Kazakhstan’s overall grain exports also recorded solid growth, rising 18 percent to 3.2 million tonnes. Domestic grain shipments increased by 8 percent, totaling 0.9 million tonnes.

Looking ahead, Kazakhstan plans to expand its agricultural processing capacity, with new grain facilities expected to handle a combined 5.8 million tonnes annually by 2028.

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Afghan economic commission approves 12 major development projects across key sectors

In the infrastructure sector, projects include connecting the eastern Kandahar substation to the new central substation in Tarinkot, as well as a major electricity transmission project from Kajaki dam to New Tarinkot.

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The Economic Deputy Office of the Prime Minister says 12 major development projects have been approved in the latest meeting of the Economic Commission and referred to relevant departments for implementation.

According to the statement, the approved projects include the transfer of imported electricity to the province of Paktika, construction of a double-circuit transmission line from Ghazni, completion of remaining substation works, and expansion of the national power network.

The package also includes extension of electricity lines from the Nurul-Jihad substation to the provinces of Herat, Farah, and Nimroz, as well as supplying electricity to Seydan village in the Grishk district of Helmand.

In the infrastructure sector, projects include connecting the eastern Kandahar substation to the new central substation in Tarinkot, as well as a major electricity transmission project from Kajaki dam to New Tarinkot.

Other approved projects include irrigation schemes in Faryab, upgrading and activating the 350-bed Aino Mina hospital in Kandahar, construction of a grand mosque with a capacity of 40,000 worshippers in Nimroz, and expansion of the Torghundi–Herat and Andkhoy–Shiberghan–Mazar-i-Sharif railway lines.

Officials say these projects aim to strengthen infrastructure, improve public services, and support economic growth across the country.

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Afghanistan, Iran sign 23-point MoU to expand border trade

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Local authorities in Iran’s Sistan and Baluchestan province say a 23-point memorandum of understanding (MOU has been signed with Afghan officials following a recent visit by an Iranian delegation to Nimroz, aimed at deepening economic cooperation and boosting cross-border trade.

Mojib Hassani, Deputy for Economic Coordination and Regional Development in Sistan and Baluchestan, said the visit produced significant outcomes, particularly in expanding small-scale trade, activating border markets, and strengthening bilateral economic ties, IRNA news agency reported.

He noted that Iran is fully prepared to launch local border markets in Shahgol, Milak, and Gomshad, but implementation will depend on readiness from the Afghan side. According to Hassani, the necessary infrastructure has already been completed on Iran’s side of the border.

Trade through official crossings remains ongoing, he said, with livestock imports among the key commodities exchanged—especially ahead of Eid al-Adha, when demand typically rises.

Hassani added that the 23-point framework was developed following the Afghan Minister of Commerce’s visit to Iran, with a strong focus on improving and expanding infrastructure to facilitate trade.

Among the early outcomes of the agreement is the construction of a temporary road linking two border markets, completed within a short timeframe and already contributing to increased trade flows.

He also confirmed Iran’s readiness to build a second border bridge, noting that some equipment has already been deployed. However, further progress on the project—currently around 30 percent complete—will require coordination with Afghan authorities.

Plans are also underway to install an X-ray scanning system at the border, with the process accelerated and expected to be finalized by the end of Jawza (June).

In addition, Hassani said broader infrastructure projects, including road expansion and rail development in the region, are being considered, though they will take time to implement.

He further highlighted efforts in Iran’s Chabahar Free Zone to facilitate Afghan traders, including the development of commercial storage facilities and the allocation of land for business use.

Iranian officials say these initiatives are part of a broader strategy to transform the shared border into a hub for sustainable economic cooperation between the two countries.

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