Business
Russian firms show interest in Panjshir-to-Kabul water transfer project
During the meeting, the Russian side reportedly conveyed readiness to engage not only in the water transfer project but also in a broader range of infrastructure and energy development ventures across Afghanistan.
Several Russian companies have expressed strong interest in participating in Afghanistan’s ambitious Panjshir-to-Kabul water transfer project, a major infrastructure initiative aimed at addressing the capital’s worsening water shortage, the Ministry of Water and Energy announced.
According to the ministry, a delegation of Russian business representatives — accompanied by an official from the Russian Embassy in Kabul — met with Deputy Minister for Energy Abdul Hadi Yaqub to explore potential investment opportunities.
During the meeting, the Russian side reportedly conveyed readiness to engage not only in the water transfer project but also in a broader range of infrastructure and energy development ventures across Afghanistan.
Yaqub welcomed the proposal, saying the ministry is open to partnerships that support the country’s long-term development goals.
“The Ministry of Water and Energy welcomes all constructive cooperation in the fields of water management, power generation, and infrastructure,” Yaqub said. “The Islamic Emirate supports initiatives that contribute to Afghanistan’s sustainable growth and the well-being of its people.”
A strategic infrastructure priority
The Panjshir-to-Kabul water transfer project is among Afghanistan’s most significant planned infrastructure undertakings. The project aims to channel water from the Panjshir River to Kabul, where rapid population growth has placed severe strain on existing water resources.
Experts say that, if completed, the project could provide a critical lifeline for the capital, ensuring a more stable water supply for households, agriculture, and industry. It could also serve as a model for future large-scale hydrological and energy projects in the country.
The initiative aligns with the Islamic Emirate’s broader strategy to attract foreign investment and technical expertise, particularly from countries with a history of engagement in Afghanistan’s development.
Strengthening Afghan–Russian ties
Russia has in recent months increased its diplomatic and economic engagement with Afghanistan, signaling interest in sectors such as energy, mining, and infrastructure. Several Russian companies have previously explored opportunities in Afghanistan’s power generation and oil industries, and Moscow has hosted multiple meetings with Afghan officials to discuss cooperation.
Analysts view the latest discussions as part of a gradual deepening of economic ties between the two countries, amid Afghanistan’s ongoing efforts to rebuild its economy and reduce dependency on Western aid.
“Russia sees Afghanistan as a potential partner for regional energy connectivity and resource development,” said a Kabul-based economic analyst. “Projects like the Panjshir–Kabul water transfer could become a stepping stone for broader collaboration.”
Looking ahead
While no formal agreements have yet been signed, the ministry described the discussions with Russian companies as positive and forward-looking. Officials say technical assessments and feasibility studies will be required before construction can begin.
If realized, the project would mark one of the first major foreign-backed infrastructure initiatives under the current government — signaling renewed international confidence in Afghanistan’s stability and investment potential.
Business
Pakistan, China plan to extend CPEC to Afghanistan, revive trilateral framework
The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics.
Pakistan and China are moving forward with plans to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan, a strategic step aimed at bolstering regional connectivity and economic cooperation. The expansion, along with the revival of the Pakistan-China-Afghanistan trilateral framework, was discussed in a recent briefing to the Pakistani Senate Standing Committee on Foreign Affairs.
According to Pakistan Today, officials from Pakistan’s Ministry of Foreign Affairs outlined the details during a session in Islamabad, where they reviewed key aspects of Pakistan’s foreign relations, regional developments, and economic diplomacy.
Officials emphasized that Pakistan’s relationship with China remains strong, underscoring the “all-weather” strategic partnership between the two nations. Strengthening ties with Beijing, they stated, continues to be a cornerstone of Pakistan’s foreign policy. This includes unwavering support for China’s position on regional and international issues, particularly the One-China policy and matters related to territorial integrity.
The briefing also touched upon China’s consistent backing of Pakistan in various areas, including sovereignty, economic stability, counter-terrorism, and support for Pakistan’s exit from the Financial Action Task Force (FATF) grey list.
The Kashmir issue was also addressed, with officials noting that China considers it an unresolved matter and advocates for a peaceful resolution in line with UN Security Council resolutions.
The proposed CPEC expansion into Afghanistan is seen as a move to enhance regional economic integration amid shifting geopolitical dynamics. Officials stated that reviving the trilateral framework is part of broader efforts to foster greater cooperation and connectivity in the region, with an eye on long-term stability and prosperity.
The move also reflects both countries’ desire to further integrate Afghanistan into the regional economic landscape, a key element in fostering peace and development.
Business
Uzbekistan–Afghanistan trade rises to $1.6 billion in 2025
Trade relations remain largely export-driven, with Uzbekistan supplying Afghanistan primarily with food products, energy resources, and industrial goods.
Trade between Uzbekistan and Afghanistan rose sharply in 2025, reaching $1.6 billion, according to official data released by Uzbekistan’s National Statistics Committee.
The figure represents a 45.5 percent increase from $1.1 billion in 2024 and an 84.4 percent rise compared with 2023, when bilateral trade stood at $867.5 million, highlighting rapid growth in economic exchanges between the two countries.
Uzbekistan’s exports to Afghanistan accounted for the vast majority of the trade volume, totaling $1.5 billion, or 93.8 percent of overall bilateral turnover. Trade relations remain largely export-driven, with Uzbekistan supplying Afghanistan primarily with food products, energy resources, and industrial goods.
The surge in trade comes as Uzbekistan’s total foreign trade turnover reached $81.2 billion in 2025, reflecting broader efforts to expand and diversify external economic ties. By the end of the reporting period, Uzbekistan maintained trade relations with 210 countries.
China remained Uzbekistan’s largest trading partner, accounting for 21.2 percent of total trade, followed by Russia (16.0 percent), Kazakhstan (6.1 percent), Türkiye (3.7 percent), and the Republic of Korea (2.1 percent).
The latest figures underscore strengthening economic ties between Uzbekistan and Afghanistan amid efforts to boost regional trade and connectivity.
Business
Turkish firm eyes investment in Afghanistan’s power infrastructure
Technical assessments are also planned in various provinces to evaluate the potential for increased electricity generation from existing water resources.
A Turkish electrical equipment company has expressed strong interest in investing in Afghanistan’s hydropower sector, focusing on the installation of new-technology turbines and the rehabilitation of existing power generation facilities, according to Da Afghanistan Breshna Sherkat (DABS).
DABS Chief Executive Officer, Abdul Haq Hamkar, met with Mr. Günay Küsay, a senior engineer and representative of Turkey’s Marbeyaz company, to discuss potential cooperation in hydropower development, modernization of equipment, and the installation of advanced electricity generation systems.
During the meeting, Hamkar welcomed the Turkish delegation and said that all necessary facilities and incentives have been put in place to encourage both domestic and foreign investment in Afghanistan’s electricity and electrical equipment production sectors. He emphasized that investors are free to invest across relevant fields within the energy sector.
Mr. Küsay praised the leadership of DABS and said Marbeyaz is keen to invest in electricity generation from Afghanistan’s water resources, rehabilitate existing hydropower turbines, install modern high-capacity turbines, and contribute to strengthening the technical capacity of local staff.
At the end of the meeting, both sides agreed to hold joint technical sessions between DABS and Marbeyaz experts. Technical assessments are also planned in various provinces to evaluate the potential for increased electricity generation from existing water resources.
DABS said that improved security, economic stability, and transparent governance have helped create a more favorable environment for international companies to invest in Afghanistan’s power generation and electrical equipment production sectors.
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