Business
Public Works on track with new road linking Badakhshan to China
The Ministry of Public works said Tuesday that construction of a road, connecting Afghanistan’s Badakhshan province to China, is underway and 15 percent of the project has been completed.
The Ministry said in a statement, the construction of a 49.7km unpaved road has started from Bozhai Gonbad Khord Pamir in Badakhshan and extends to the end of the Wakhan corridor close to the border with China.
The Ministry stated that the project is part of the government’s future plan for boosting regional transit that “brings Afghanistan steps closer to regional connectivity and economic policy.”
The project, at a cost of more than 369 million AFN, will be funded by the government, the statement said.
According to the statement, the impassable mountainous Wakhan corridor, which is a narrow strip of territory in Badakhshan province that extends to China and separates Tajikistan from Pakistan and Kashmir, would be connected to China via the road.
The Ministry of Public Works stated that the road, which will eventually be paved, will be the Wakhan Route and will “not only be a shortcut between China and Afghanistan…but will also help tourists reach Wakhan National Park.”
Historically, Badakhshan is a region comprising parts of what is now north-eastern Afghanistan, eastern Tajikistan, and the Tashkurgan county in China. However, the name is retained by Afghanistan in Badakhshan Province.
Located in northeastern Afghanistan, Badakhshan is bordered by Tajikistan, Pakistan and China.
Most of the province is occupied by the Hindu Kush and Pamir mountain ranges.
Once Badakhshan was a stopover on the ancient Silk Road trading path but the Wakhan corridor has been closed to regular traffic for over a century as there is no modern road.
There is a rough track for a few dozen kilometers that was built in the 1960s, but for much of the way, to the Chinese border, there are only rough paths.
The remoteness of the region has meant that, despite the long-running wars of Afghanistan since the late 1970s, the region has remained virtually untouched by conflict and many locals, who are mostly composed of ethnic Pamir and Kyrgyz, are not aware of wars in the country.
Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.
Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.
Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.
Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.
Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.
Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.
Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.
He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.
Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.
A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.
According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.
He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.
Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.
The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.
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