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.
Business
Uzbek exploration company launches energy survey project in Afghanistan
The new seismic survey marks the second major energy exploration initiative by Uzbek companies in Afghanistan in recent years.
An exploration company backed by the government of Uzbekistan has begun collecting seismic data in northern Afghanistan as part of a new energy exploration project agreed between the two neighboring countries last year.
According to Uzbekistan’s Ministry of Mining Industry and Geology of Uzbekistan, the Uzbek Overseas Geology Company (UOGC) has started work to gather 2D seismic data across three exploration blocks in northern Afghanistan: Ahmadabad, Muhammad-Jandagar, and Shamar.
The three blocks cover more than 7,600 square kilometers near Afghanistan’s border with Tajikistan. Initial seismic surveys are expected to focus on about 600 square kilometers of the area.
Officials say the project will be fully financed by UOGC and aims to identify potential hydrocarbon reserves, while also assessing the area for other mineral resources, including iron and copper deposits.
The exploration work follows a cooperation agreement signed in 2025 between Uzbekistan’s mining ministry and Afghanistan’s Ministry of Mines and Petroleum of Afghanistan. Under the deal, the Uzbek side has two years of exclusive exploration rights in the blocks.
If commercially viable resources are discovered, Afghan authorities have agreed to give priority development rights to an operating company formed by the Uzbek partners.
The Uzbek Overseas Geology Company was established in early 2025 by two state-linked Uzbek exploration firms, Uzbekgeologorazvedka and Uzbekgeofizika, the latter being affiliated with Uzbekistan’s state energy producer Uzbekneftegaz.
Growing Uzbek energy involvement in Afghanistan
The new seismic survey marks the second major energy exploration initiative by Uzbek companies in Afghanistan in recent years.
In 2024, authorities in Tashkent announced that Eriell KAM—a joint venture between Uzbekistan’s oilfield service provider Eriell Group and Afghanistan’s Kam Group—had taken over exploration plans for the Totimaidan gas block.
The Totimaidan block is located in Faryab Province near the border with Turkmenistan and spans roughly 7,000 square kilometers. The area is believed to contain the undeveloped Juma and Bashikurd sour gas fields, according to energy consultancy Wood Mackenzie.
Although Afghanistan originally auctioned the block in 2014, a production-sharing contract was never finalized.
Regional cooperation and economic integration
Analysts say Uzbekistan’s growing involvement in Afghanistan’s resource sector reflects both geographic proximity and broader regional economic interests.
Tashkent-based investment consultant Farkhodjon Israilov said exploration projects in Afghanistan are not only about energy resources but also about encouraging infrastructure development and economic activity in the country.
According to Israilov, greater regional investment and economic integration could contribute to long-term stability and mutually beneficial growth for Afghanistan and its neighbors.
Uzbek officials say the seismic surveys represent an important step toward identifying Afghanistan’s untapped natural resources while expanding energy cooperation between the two countries.
Business
UNHCR launches largest carpet-weaving centre in western Afghanistan
Over the past year, some 2 million Afghans have returned from Iran, highlighting the urgent need for economic opportunities, especially for women, said UNHCR.
The UNHCR, in collaboration with the Islamic Development Bank, on Wednesday inaugurated the largest carpet-weaving center in western Afghanistan’s Herat province.
The initiative, attended by UN Deputy Special Representative Indrika Ratwatte and local community leaders, will support 400 returnees, with more than three-quarters of them women, providing livelihoods and skills training.
The centre aims to empower returnees and host communities, helping them rebuild sustainable livelihoods, a priority need identified by Afghans returning from Iran.
Over the past year, some 2 million Afghans have returned from Iran, highlighting the urgent need for economic opportunities, especially for women, said UNHCR.
Business
Uzbekistan ratifies preferential trade agreement with Afghanistan
Uzbekistan’s President Shavkat Mirziyoyev has officially ratified the Preferential Trade Agreement (PTA) between Uzbekistan and Afghanistan.
The agreement was first signed on 10 June 2025 during the Tashkent International Investment Forum by Uzbekistan’s Minister of Investment and Foreign Trade Laziz Kudratov and Afghanistan’s Minister Nuriddin Azizi, Uzbekistan Daily reported.
The PTA eliminates tariffs on 14 categories of goods, simplifies the issuance of phytosanitary permits for Afghan agricultural products, and introduces additional support measures for Uzbek exporters.
In February 2026, Uzbekistan’s Deputy Prime Minister Jamshid Khodjaev held online talks with Azizi to accelerate the agreement’s entry into force, advance investment projects, and promote industrial cooperation. A new joint business forum is planned to take place in Kabul after the conclusion of Ramadan.
The agreement is expected to strengthen bilateral trade, boost economic ties, and create new opportunities for Afghan businesses and exporters.
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